Which of the Following Reflects How Gains and Losses Arising

question 2

Multiple Choice

Which of the following reflects how gains and losses arising from foreign currency translation reflect PSA?

• A)An exchange gain or loss that arises prior to settlement (i.e. that is unrealized)is recognized in the statement of remeasurement gains and losses.
• B)Exchange gains and losses are generally recognized in profit or loss. In the case of exchange differences arising on a monetary item that forms part of a reporting entity's net investment in a foreign operation, the consolidated financial statements initially recognize exchange gains and losses in OCI.
• C)Exchange gains and losses are generally recognized in profit or loss.
• D)In the case of most self-sustaining foreign operations, exchange gains and losses are recognized in a separate component of shareholders' equity.

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Definitions:

Culture

A society’s unique set of values and norms that govern how people live and interact with each other.

Monotheistic Religions

Religions that worship a single deity and believe in the concept of one God or supreme being.

Asia-Pacific Region

A geographical area in the Western Pacific that includes East Asia, South Asia, Southeast Asia, and Oceania.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.