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:

Operating Costs

The expenses associated with the day-to-day operations of a business, including costs of goods sold, salaries, and administrative expenses.

Injection Mold

A manufacturing process for producing parts by injecting molten material into a mold.

Selling Price

The amount at which a product or service is sold to customers, often determined by costs, market demand, and competition.

Investment

The process of distributing assets, often funds, in anticipation of earning revenue or profit.