When Translating the Financial Statements of a Foreign Operation to Presentation

question 6

Multiple Choice

When translating the financial statements of a foreign operation to presentation currency,AASB 121 requires any gain or loss on translation of the accounts 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.

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Definitions:

Trimethylheptane

A saturated hydrocarbon with the formula C10H22; it’s a branched alkane used in organic synthesis and as a reference in octane rating.

Carbon Atoms

The basic building blocks of the vast majority of organic compounds, capable of forming strong covalent bonds due to their tetravalency.

Hydrogen Atoms

The simplest type of atoms consisting of one proton and one electron, fundamental in chemistry and the building blocks of molecules.

Alkane Name

The systematic nomenclature assigned to alkanes based on the number of carbon atoms in their longest chain and specific rules.