Multiple Choice
According to IAS 21,
A) a forward contract may be used to set the value of a nonmonetary asset whose purchase was hedged by the forward contract.
B) a forward contract can hedge the value of a commitment but not a transaction.
C) the current rate method may be used but not the temporal method.
D) long-term monetary items may be translated at the historical rate.
E) Two of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q39: According to FASB Statement No. 52,<br>A) translation
Q40: Assume that U.S. parent company ABC
Q41: IAS 21 and SFAS 52 have the
Q42: In the current rate method the assets
Q43: If a parent company has a subsidiary
Q45: The local currency is<br>A) the currency in
Q46: From the standpoint of the parent company,
Q47: According to the temporal method of translation,<br>A)
Q48: The process by which one currency is
Q49: According to FASB Statement No. 52, which