Multiple Choice
When a parent entity has an overseas subsidiary the first task before consolidation is to:
A) translate the financial statements from the functional currency to the presentation currency.
B) translate the financial statements from the presentation currency to the functional currency.
C) determine the functional currency of the overseas subsidiary.
D) determine the functional currency of the parent entity.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Explain at what exchange rate income and
Q19: In the process of consolidating the
Q20: If the assets of a foreign operation
Q21: Aus Co Ltd has a foreign
Q22: AASB 121 requires foreign currency transactions to
Q24: The foreign exchange exposure of the parent
Q25: As prescribed in AASB 121,in translating the
Q26: The 'spot rate' is:<br>A) the rate for
Q27: When translating foreign subsidiary financial statements,net assets
Q28: Under the translation method required by AASB