AASB 121 Requires Foreign Currency Transactions to Be Recorded on Initial

question 48

True/False

AASB 121 requires foreign currency transactions to be recorded on initial recognition in the local currency,by applying to the foreign currency amount the spot exchange rate between the local currency and the foreign currency at the date of the transaction.

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Definitions:

Audit Report

A formal statement issued by an auditor at the conclusion of an audit process, summarizing their opinion on an entity's financial statements.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company for reinvestment or to pay debt.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.