If the Functional Currency of a Foreign Operation Is Different

question 25

Multiple Choice

If the functional currency of a foreign operation is different than the parent's, functional currency, how are exchange gains and losses to be reported?

• A) As part of other comprehensive income.
• B) In an exchange account.
• C) As part of the non-controlling interest.
• D) As part of the acquisition differential amortization.

---

Definitions:

Defamation Statement

A statement that damages someone's reputation by false or unjustified claims.

Held Liable

Being legally responsible for a wrongful act or omission, which can result in having to pay damages or make restitution.

Prospective Contract

A prospective contract refers to a future agreement that parties intend to enter into, outlining the terms and conditions that will govern their relationship moving forward.

Intentional Interference

An act or practice intending to disrupt or hinder the rights, property, or business interests of another party.