Question 1

An effective foreign currency hedging transaction will:

Accepted Answer

A)  largely eliminate the risk of loss but allow a gain to be made on a foreign exchange transaction 
B)  require the services of a banker or similar financial intermediary 
C)  largely eliminate both the risk of loss and the possibility of gain on a foreign exchange transaction 
D)  involve both A and C above 
A)  largely eliminate the risk of loss but allow a gain to be made on a foreign exchange transaction 
B)  require the services of a banker or similar financial intermediary 
C)  largely eliminate both the risk of loss and the possibility of gain on a foreign exchange transaction 
D)  involve both A and C above

Question 2

The requirements for AASB 121 (para 39)include which of the following:

Accepted Answer

A)  assets and liabilities for each statement of financial position presented (i.e. including comparatives) shall be translated at the closing rate at the date of that statement of financial position 
B)  income and expenses for each statement presenting profit or loss and other comprehensive income (i.e. including comparatives) shall be translated at exchange rates at the dates of the transactions 
C)  all resulting exchange differences shall be recognised in other comprehensive income 
D)  all of the above 
A)  assets and liabilities for each statement of financial position presented (i.e. including comparatives) shall be translated at the closing rate at the date of that statement of financial position 
B)  income and expenses for each statement presenting profit or loss and other comprehensive income (i.e. including comparatives) shall be translated at exchange rates at the dates of the transactions 
C)  all resulting exchange differences shall be recognised in other comprehensive income 
D)  all of the above

Question 3

The 'functional currency' of a business is:

Accepted Answer

A)  the currency of the country in which the business is incorporated 
B)  the currency of the primary economic environment in which the company operates 
C)  the currency in which the business presents its financial reports 
D)  the currency of the country in which the majority of the shareholders of the business are located 
A)  the currency of the country in which the business is incorporated 
B)  the currency of the primary economic environment in which the company operates 
C)  the currency in which the business presents its financial reports 
D)  the currency of the country in which the majority of the shareholders of the business are located

Question 4

AASB 121 requires that non-monetary items are measured,subsequent to their initial recognition,at:

Accepted Answer

A)  the exchange rate at the date of transaction 
B)  the exchange rate at the date of that the fair value was determined 
C)  an average exchange rate at the end of the reporting period 
D)  both A and B can apply 
A)  the exchange rate at the date of transaction 
B)  the exchange rate at the date of that the fair value was determined 
C)  an average exchange rate at the end of the reporting period 
D)  both A and B can apply

An effective foreign currency hedging transaction will:

The requirements for AASB 121 (para 39)include which of the following:

The 'functional currency' of a business is:

AASB 121 requires that non-monetary items are measured,subsequent to their initial recognition,at:

Institutional Arrangements for Setting Accounting Standards in Australia

The Conceptual Framework: Purpose, reporting Entity, the Objective of Financial Reporting, and Qualitative Characteristics

The Conceptual Framework: Definition, recognition and Measurement of the Elements in General Purpose Financial Statements

Fair Value Measurement

The Choice of Accounting Methods

The Statement of Financial Position

Accounting for Current Assets

Accounting for Property, plant and Equipment

Accounting for Company Income Tax

Accounting for Intangible Assets

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

The Statement of Comprehensive Income

Revenue

The Statement of Cash Flows

Financial Reporting: Segment Reporting and Highlights Statements

Further Financial Reporting Issues

Accounting for Extractive Industry

Accounting for Agricultural Activity

Accounting for Superannuation Entities

Accounting for Insurance

International Accounting Standards, harmonisation and Convergence

Accounting for Corporate

Ethics in Accounting

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Exam 24: Foreign Currency Translation

An effective foreign currency hedging transaction will:

The requirements for AASB 121 (para 39)include which of the following:

The 'functional currency' of a business is:

AASB 121 requires that non-monetary items are measured,subsequent to their initial recognition,at:

Institutional Arrangements for Setting Accounting Standards in Australia

The Conceptual Framework: Purpose, reporting Entity, the Objective of Financial Reporting, and Qualitative Characteristics

The Conceptual Framework: Definition, recognition and Measurement of the Elements in General Purpose Financial Statements

Fair Value Measurement

The Choice of Accounting Methods

The Statement of Financial Position

Accounting for Current Assets

Accounting for Property, plant and Equipment

Accounting for Company Income Tax

Accounting for Intangible Assets

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

The Statement of Comprehensive Income

Revenue

The Statement of Cash Flows

Financial Reporting: Segment Reporting and Highlights Statements

Further Financial Reporting Issues

Accounting for Extractive Industry

Accounting for Agricultural Activity

Accounting for Superannuation Entities

Accounting for Insurance

International Accounting Standards, harmonisation and Convergence

Accounting for Corporate

Ethics in Accounting

Filters