Under the Translation Method Required by AASB 121,the Approach to Translating

question 8

Multiple Choice

Under the translation method required by AASB 121,the approach to translating a foreign operation's accounts includes:

• A) Translating post-acquisition changes in equity at the exchange rate current at the date of the change.
• B) Translating non-monetary assets at the spot exchange rate at the date of the purchase transaction.
• C) Translating revenue and expense items at the exchange rate current at reporting date where the revenues and expense transactions have been evenly distributed over the period.
• D) Translating proposed distributions from retained profits at the exchange rate current when the distributions are completed in cash.
• E) All of the given answers.

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Definitions:

Observational

Relating to the collection of data by observing and measuring phenomena as they occur naturally, without manipulation or intervention.

Categorical Variable

A variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual to a particular group or category.

Quantitative Variable

A type of variable that can be measured and expressed numerically, allowing for mathematical operations and statistical analysis.

Statistical Inference

The method of applying data analysis techniques to infer characteristics of a fundamental probability distribution.