Which of the Following Items Is Not Within the Scope

question 40

Multiple Choice

Which of the following items is not within the scope of AASB 112 "The effects of changes in foreign exchange rates"?

• A) Foreign currency denominated loans
• B) Bank deposits in foreign currency
• C) Investments in foreign operations
• D) Foreign currency derivatives
• E) None of the given answers.

---

Definitions:

Long-Term Investment

Assets that a company intends to hold for more than one year, including stocks, bonds, real estate, and other securities.

Acquisition Method

An accounting approach used for consolidating the financial statements of a parent company and its subsidiaries.

Voting Common Shares

Shares of common stock that provide the shareholder with the right to vote on corporate matters.