Exam 8: Translation of Financial Statements Into a Presentation Currency

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

Post-acquisition date retained earnings that are denominated in a foreign currency are:

Which of the following must be disclosed when the presentation currency of the parent entity is different from the functional currency?

Which of the following is an additional question to be asked in determining whether a foreign entity's functional currency is the same as that of the reporting entity?

When translating foreign currency denominated financial statements into the functional currency, the exchange differences are recognised:

Indicators pointing towards the reporting entity's currency as the functional currency include that which of the following?

When translating into the presentation currency, all assets and liabilities are translated using the:

The exchange rate at a point of time for immediate delivery of the currency in an exchange is known as the:

Which of the following statements is incorrect?

According to AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates, the key economic factor to consider in determining an entity's functional currency is:

Which of the following statements is incorrect?

Under AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity must disclose which of the following items in particular? I. The amount of exchange differences included in profit or loss of the period. II) The amount of the exchange difference included directly in share capital during the period. III) Whether a change in the functional currency has occurred. IV) The reason for using a presentation currency that is different from the functional currency.

The presentation currency is:

When translating into the functional currency, monetary liabilities are translated using the:

Dividends declared are translated into the presentation currency at the:

By applying the definition provided in AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates, which of the following items will be regarded as a monetary item?

According to the temporal method, monetary assets are translated at the:

The general rule for translating liabilities denominated in a foreign currency into the functional currency is to:

When translating into the functional currency, foreign currency denominated non-monetary assets measured at historical cost must be translated using the:

Which exchange rate should be used when translating revenue and expense items in the statement of profit or loss and other comprehensive income into the functional currency?