The Spot Rate Is Defined in AASB 121 As

question 41

Multiple Choice

The spot rate is defined in AASB 121 as:

• A) The rate at which the currency to be exchanged is currently selling against a bundle of currencies of major trading partners.
• B) The exchange rate for immediate delivery of currencies to be exchanged.
• C) One identified exchange rate for the relevant currencies from the period on or around the date of the transaction.
• D) The current exchange rate as implied by forward-exchange contracts in place at the time of the transaction.
• E) None of the given answers.

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Definitions:

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after the elimination of inter-company transactions and balances.

Non-Controlling Interest

A minority stake in a company or subsidiary where the shareholder does not have control over company's policies or decisions.

Unrealized Profit

Profit earned on paper from an investment that has increased in value but has not yet been sold by the investor.