When Translating the Financial Statements of a Foreign Operation to Presentation

question 10

Multiple Choice

When translating the financial statements of a foreign operation to presentation currency,IAS 21 requires any gain or loss on translation of the financial statements to be:

• A)recognised as a revenue or expense in the statement of comprehensive income.
• B)transferred to a reserve in the equity section of the statement of financial position.
• C)deferred and amortised over a period not greater than 20 years.
• D)written off against the non-monetary assets of the foreign operation with any balance remaining recognised as a revenue or expense in the period.