When Translating the Financial Statements of a Foreign Operation to Presentation

question 10

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 income statement.
• B) Transferred to a reserve in the equity section of the balance sheet.
• C) Deferred and amortised over a period of 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.
• E) None of the given answers.

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Definitions:

Personality Traits

Consistent patterns of thought, behavior, and emotion that characterize an individual's responses across various situations.

Mortality

refers to the state of being mortal or the incidence of death in a population.

Divorce

The official ending of a marriage through the decision of a court or a recognized authority.

Occupation

A person's regular activity or job that occupies their time, often used in relation to both paid and unpaid roles and considered in contexts like occupational therapy.