When Translating the Assets and Liabilities from Functional Currency to Presentation

question 12

Multiple Choice

When translating the assets and liabilities from functional currency to presentation currency,AASB 121 requires that:

• A) the exchange rates at the dates of transaction are used
• B) the exchange rate as at the end of the reporting period is used
• C) an average exchange rate for the year of reporting be used
• D) either a or c can be used

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Definitions:

Poisson Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming that these events occur with a known constant mean rate and independently of the time since the last event.

Tickets

A document or electronic card that gives the holder a right to admission, travel, or participation in an event.

Continuous Random Variable

A type of random variable that can take on an infinite number of values in a continuum.

Expected Cost

The forecasted average amount of money that would be spent on a particular event or activity.