Where a Change in the Functional Currency Occurs, the Translation

question 24

Multiple Choice

Where a change in the functional currency occurs, the translation procedures as outlined in IAS 21 The Effects of Changes in Foreign Exchange Rules, apply:

• A) prospectively, from the date of the change;
• B) prospectively, from the next reporting date;
• C) retrospectively and must be adjusted in the opening balance of retained earnings;
• D) retrospectively and must be adjusted directly into the current period profit or loss.

---

Definitions:

Operating Expenses

Costs associated with the day-to-day functions of running a business, excluding the costs of goods sold.

Virtual Teams

Groups of people working together across time, space, and organizational boundaries, supported by technology to fulfill a common goal or project.