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

question 47

Multiple Choice

In the process of consolidating the translated financial accounts 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:

Demand Schedule

A chart or table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Elastic Segment

refers to a portion of the market where demand is highly sensitive to changes in price.

Inelastic Segment

A portion of the demand curve where consumers' demand for a product does not significantly change with a change in price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.