As Prescribed in AASB 121,in Translating the Accounts of a Foreign

question 25

True/False

As prescribed in AASB 121,in translating the accounts of a foreign operation from functional to presentation currency,the exchange rate to use for inventory is the average rate during the period the inventory was purchased.

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Definitions:

NASDAQ

An international digital platform for the trade of securities, and also serves as the standard index for technology stocks in the U.S.

Financial Market

A marketplace where buyers and sellers engage in trading financial instruments such as stocks, bonds, commodities, and currencies.

OTC Market

Over-the-counter market where securities are traded directly between parties without the oversight of an exchange.

Auction Market

A market where buyers and sellers submit bids and offers to buy or sell goods and services, with transactions occurring at prices determined through the auction process.