AASB 121 Requires the Translation of Financial Statements in Which

question 1

Multiple Choice

AASB 121 requires the translation of financial statements in which of the following circumstances?
I.if the domestic currency of the foreign operation is not the same as the functional
currency of its parent
ii) if the functional currency of the foreign operation is not the same as the functional currency of its parent
iii) if the functional durrency of the econornicentity is not its presentationcurrency
iv) if the presentationarrency of the econornicentity is not its functional currency

• A) i and ii
• B) ii and iii
• C) iii and iv
• D) i and iii

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Definitions:

Fixed Component

The portion of a cost or expense that remains constant regardless of changes in the level of activity or production.

Least-squares Regression

A statistical method used to determine the best-fit line that minimizes the sum of the squared differences between observed values and the values predicted by the line.

Cost Formula

An equation used to determine the total cost of production, which includes fixed and variable costs.

Activity Data

Information related to the actions or operations of a business, which may include sales, production, or other operational metrics.