Gains or Losses That Arise as a Result of Translating

question 15

Multiple Choice

Gains or losses that arise as a result of translating foreign currency denominated operations into the reporting currency are recognised in income:

• A) in the reporting period in which they arise;
• B) only when the interest in the foreign operation is sold;
• C) only if they are material items;
• D) only when they are settled in cash.

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Definitions:

SWOT Analysis

A tool for strategic planning that helps determine the Strengths, Weaknesses, Opportunities, and Threats connected to competing in business or planning projects.

Environmental Scanning

The act of monitoring developments outside the firm’s control with the goal of detecting and responding to threats and opportunities.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Environmental Scanning

The process of systematically gathering, analyzing, and managing external information about the factors that could impact an organization's future plans.