Multiple Choice
Yarra Manufacturing Ltd is an Australian registered entity that has a branch in Singapore,Kew Ltd.The Singapore branch has a foreign operation in China.The foreign operation maintains its accounting records in Chinese Yuan.The functional currency of the Chinese operation is Singapore dollar.The presentation currency of Kew Ltd is Australian dollar. At reporting date,the translation of the financial statements of the Chinese foreign operation resulted to a loss of S$6 500 and the translation of the financial statements of Kew Ltd to its presentation currency resulted to a gain of A$4 500.
Which of the following results is consistent with AASB 121 with respect to Kew Ltd?
A) Loss of S$6 500 should be recognised in profit and loss.
B) Loss of S$6 500 should be recognised in comprehensive income.
C) Gain of A$4 500 should be recognised in profit and loss.
D) Gain of A$4 500 should be recognised in comprehensive income.
E) None of the given answers.
Correct Answer:
Verified
Correct Answer:
Verified
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Q12: In the process of consolidating the translated
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Q17: The following is an extract from the
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Q20: Distributions from retained profits are translated at<br>A)
Q40: When consolidating financial statements of foreign operations,we
Q48: AASB 121 requires foreign currency transactions to