When Translating Foreign Currency Denominated Financial Statements into the Functional

question 8

Multiple Choice

When translating foreign currency denominated financial statements into the functional currency, the exchange differences are recognised:

• A) as an item of gain or loss in the statement of profit or loss and other comprehensive income;
• B) directly in the retained earnings account;
• C) as a deferred asset or liability;
• D) as a separate component of equity.

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Definitions:

Migration

The movement of people from one geographical area to another, often for the purpose of settling temporarily or permanently.

Labor Migration

The movement of workers from one region or country to another in order to find employment or pursue better economic opportunities.

Migrant Workers

Individuals who move from one region or country to another to seek employment opportunities, often in temporary or seasonal jobs.

Labor Migration

the movement of people from one area to another for the purpose of employment.