Which of the Following Methods for Translating Foreign Currency Financial

question 40

Multiple Choice

Which of the following methods for translating foreign currency financial statements is required under IAS 21?

• A) Current rate method.
• B) Temporal method.
• C) Current rate method or temporal method, depending on the functional currency of the subsidiary.
• D) Current rate method or temporal method must be chosen by management of the parent.

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Definitions:

Service

An intangible economic activity that satisfies a need or wants, often performed by humans or automated systems.

Ambience

The character and atmosphere of a place, often related to its visual and environmental qualities that contribute to its overall feel.

Convenient Location

Refers to a geographical location that offers ease of access, making it favorable for businesses or residences.

Product Differentiation

A marketing strategy that businesses use to distinguish their products from those of competitors, highlighting differences in quality, features, or design.