The Following Items Are in the Financial Statements of Pirie

question 26

Multiple Choice

The following items are in the financial statements of Pirie Plc as at 30 June 2015. $$\begin{array} { | l | l | } \hline \text { I } & \text { Foreign currency accounts receivable } \\\hline \text { II } & \text { Foreign currency long-term debt } \\\hline \text { III } & \text { Machinery measured in foreign currency-at cost } \\\hline \text { IV } & \text { Inventories measured in foreign currency } \\\hline\end{array}$$ Which of the following combinations identify all items required to be translated at spot rate on 30 June 2015 as prescribed in IAS 21 The Effects of Changes in Foreign Exchange Rates?

• A)I and II
• B)II and III
• C)II and IV
• D)III and IV

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, accounting for its current market price, face value, interest rate, and time to maturity.

Intrinsic Value

The inherent worth of an asset, determined based on underlying perceptions of its true value rather than its current market price.

International Bond

An international bond is a debt investment that is issued in a country by a non-domestic entity, which can be denominated in the issuing country's currency or another currency.

Samurai Bonds

Samurai bonds are yen-denominated bonds issued in Tokyo by foreign governments and organizations, offering investors the opportunity to invest in foreign entities while mitigating currency risk.