Where the Functional Currency of a Foreign Operation Is Not

question 31

Multiple Choice

Where the functional currency of a foreign operation is not that of an Australian company,in translating the financial statements of that operation into the presentation currency of the Australian company:

• A) Foreign currency monetary items are translated at the closing rate and non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
• B) Foreign currency monetary items and non-monetary items are translated at the closing rate.
• C) Foreign currency monetary items and non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
• D) None of the above.

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Definitions:

Organizational Stories

Narratives shared within an organization that encapsulate its values, history, and culture, playing a key role in shaping organizational identity.

Core Values

Core values are the fundamental beliefs and guiding principles that dictate behavior and can help people understand the difference between right and wrong within an organization or individual's ethical framework.

Beliefs

Personal convictions or acceptances that something is true or exists, often based on cultural, educational, or personal experiences.

Culture

A set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.