Which of the Following Methods for Translating Foreign Currency Financial

question 40

Multiple Choice

Which of the following methods for translating foreign currency financial statements is required under IAS 21?

• A) Current rate method.
• B) Temporal method.
• C) Current rate method or temporal method, depending on the functional currency of the subsidiary.
• D) Current rate method or temporal method must be chosen by management of the parent.

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Definitions:

Nutrient-rich

Containing a high concentration of essential nutrients necessary for healthy growth and development.

Upwelling

Upward movement of deep, nutrient-rich water along coasts; it replaces surface waters that move away from shore when the direction of the prevailing wind shifts.

Ocean Current

Large scale movement of water within the oceans, driven by factors such as wind, salinity, and earth's rotation, influencing climate and marine ecosystems.

Freshwater Pollution

Contamination of lakes, rivers, and streams by harmful substances, leading to negative environmental and health effects.