When May the Translation Adjustment Resulting from Translating Financial Statements

question 41

Multiple Choice

When may the translation adjustment resulting from translating financial statements using the current or functional method be recognized in income?

• A)​When there is an accumulated other comprehensive deficit that exceeds retained earnings.
• B)​When the parent disposes of its interest in the subsidiary.
• C)​When the functional currency changes to the reporting currency.
• D)​None of the above is correct.

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Definitions:

Local Air Pollution

Contamination of the air within a specific area or region, primarily due to human activities, that can harm human health and the environment.

Deforestation

The large-scale removal of forest areas through cutting or burning, often to clear land for agriculture or development.

Fossil Fuel Burning

The combustion of coal, oil, gas, or other fossil fuels to produce energy, resulting in the emission of greenhouse gases and other pollutants.

Industrial Revolution

A period of major industrialization from the late 1700s to the early 1800s that transformed largely agrarian societies into industrialized ones.