Translating from the Functional Currency to the Presentation Currency Involves

question 27

Multiple Choice

Translating from the functional currency to the presentation currency involves which of the following procedures?

• A) Recognise exchange differences in other comprehensive income.
• B) Translate the income and expenses at the exchange rates at the dates of the transactions.
• C) Translate the assets and liabilities at the closing rate at the date of the statement of financial position.
• D) All of the above.

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Definitions:

Preoperational Intelligence

A stage in Piaget’s theory of cognitive development, typically from ages 2 to 7, where children begin to engage in symbolic play and learn to manipulate symbols but do not yet understand concrete logic.

Logical Operations

Mental processes involved in reasoning and understanding logical relationships among concepts or practices.

Cognitive Development

The process by which a person acquires ability to reason, solve problems, and understand the world around them, through the interaction of genetic and learned factors.

Static Reasoning

A cognitive state where a person believes the world is unchanging, and what is true now will always be true.