Exchange Differences Arising When Translating from the Functional Currency into the Presentation

question 1

Multiple Choice

Exchange differences arising when translating from the functional currency into the presentation currency are recognised in other comprehensive income and:

• A) recorded as a deferred asset and amortised over the expected useful life.
• B) recognised in profit or loss.
• C) accumulated in equity using a 'foreign currency translation reserve'.
• D) accumulated in equity using retained earnings.

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Definitions:

Instinctive Drives

Innate impulses that motivate individuals to perform certain actions essential for survival, such as eating and reproducing.

Socially Unacceptable

Behaviors or actions that are generally considered offensive, inappropriate, or not in line with societal norms and values.

Acceptance

Agreeing verbally or in writing to the terms of a contract, which is one of the requirements of an enforceable contract.

Grief

A deep and poignant emotional pain or distress caused by loss, especially of a loved one.