As Prescribed in IAS 21,in Translating the Accounts of a Foreign

question 17

True/False

As prescribed in IAS 21,in translating the accounts of a foreign operation from local currency to functional currency,the exchange rate to use for land is the exchange rate at the date of the transaction.

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Definitions:

Cash Payment

A transaction in which a payment for goods or services is made using physical currency or through a digital mechanism but representing a direct transfer of funds.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenues, indicating the company's profitability over a particular period.

Commercial Fishing Boat

A vessel used for catching fish commercially for profit, often equipped with specialized fishing gear.

New Stock

New stock refers to shares that a company issues to the public for the first time, typically through an initial public offering (IPO) to raise capital.