Gains from Remeasuring a Foreign Subsidiary's Financial Statements from the Local

question 19

Multiple Choice

Gains from remeasuring a foreign subsidiary's financial statements from the local currency, which is not the functional currency, into the parent company's currency should be reported as a(n) :

• A)other comprehensive income item.
• B)extraordinary item (net of tax).
• C)part of continuing operations.
• D)deferred credit.

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Definitions:

Selling Price

The amount of money for which a product or service is sold, which can include costs and profit margins.

Margin

In finance, margin refers to the difference between the selling price and the cost of goods sold, often expressed as a percentage of the selling price. In trading, it refers to the collateral required to open and maintain a position.

Cost

The amount of money required to purchase something or the expense incurred to create a product or service.

Overhead Costs

Expenses related to the day-to-day running of a business that are not directly linked to the production of goods or services.