Under the Translation Method Required by IAS 21,the Approach to Translating

question 19

Multiple Choice

Under the translation method required by IAS 21,the approach to translating a foreign operation's financial statements includes:

• A)translating monetary items at the closing rate of exchange .
• B)translating non-monetary assets at the average exchange rate since the date of purchase of the asset.
• C)translating transfers of post-acquisition equity items within the equity category at the rate of exchange current at the date the original equity item was first included in equity.
• D)translating revenues and expenses at the average rate of exchange applied to equity items.

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Definitions:

F-test

A statistical test used to compare the variances of two populations to ascertain if they are equal or significantly different.

One-way ANOVA

A statistical test that assesses whether there are statistically significant differences between the means of three or more unrelated groups.

T-test

A statistical test used to compare the means of two groups or to compare a sample mean to a known value, assessing whether differences are statistically significant.

F-test

A statistical test used to determine if there are significant differences between the variances of two or more groups.