In the Process of Consolidating the Translated Financial Statements of a Foreign

question 29

Multiple Choice

In the process of consolidating the translated financial statements of a foreign operation,the calculation of minority interests will be affected by the translation process in what way?

• A)The minority interests will be allocated a portion of the gain or loss on translation from the statement of comprehensive income.
• B)The effect of transactions between the subsidiary and the minority interests will be eliminated after calculating the unrealised foreign exchange gain or loss implicit in the unrealised profit on the inter-company transaction.
• C)The minority interests will be allocated a portion of the foreign currency translation reserve.
• D)The calculation of the minority interests' is not affected.

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Definitions:

Weakens

To reduce the strength, effectiveness, or power of something or someone.

Probability

The measure of the likelihood that an event will occur.

Secondary Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer, such as money being valued for what it can buy.

Gold Star

A symbol of praise or achievement, often used in educational settings to reward good performance or behavior.