Yarra Manufacturing Ltd Is an Australian Registered Entity That Has

question 38

Multiple Choice

Yarra Manufacturing Ltd is an Australian registered entity that has a branch in Singapore,Kew Ltd.The Singapore branch has a foreign operation in China.The foreign operation maintains its accounting records in Chinese yuan.The functional currency of the Chinese operation is Singapore dollar.The presentation currency of Kew Ltd is Australian dollar. At reporting date,the translation of the financial statements of the Chinese foreign operation resulted in a loss of S$6500 and the translation of the financial statements of Kew Ltd to its presentation currency resulted to a gain of A$4500.
Which of the following results is consistent with AASB 121 with respect to Kew Ltd?

• A) Loss of S$6500 should be recognised in profit and loss.
• B) Loss of S$6500 should be recognised in comprehensive income.
• C) Gain of A$4500 should be recognised in profit and loss.
• D) Gain of A$4500 should be recognised in comprehensive income.

---

Definitions:

Forcing

A conflict resolution strategy where one party insists on its position regardless of the impact on others.

Avoidance

A conflict management strategy where parties ignore the problem at hand, or distance themselves from the conflict to avoid confrontations.

Problem Solving

The process of identifying a problem, developing potential solutions, and implementing a solution.

Competitive Conflict

A situation where businesses or entities vie against each other for the same objective, leading to conflict due to their competing interests or goals.