When Translating into the Presentation Currency the Translation Difference Is

question 17

Multiple Choice

When translating into the presentation currency the translation difference is recognised:

• A) in profit or loss
• B) as a separate component of equity
• C) in retained earnings
• D) as an asset or liability, depending on whether it is a debit or credit balance.

---

Definitions:

EPS

Earnings Per Share (EPS) is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Operating Leverage Analysis

Examination of how fixed operating costs relate to profit levels, assessing the degree to which a firm can increase profits by increasing sales.

Breakeven Analysis

A technique for finding the volume at which a firm breaks even financially—that is, earns zero profit.

Volume

The quantity of an asset or security that is traded within a specified time period.