________ occur as a result of changes in the value of currency whereas ________ occur as a result of ongoing business activities.
A)Operating gains or losses; Translation gains or losses
B)Swap losses; Translation gains or losses
C)Translation gains or losses; Operating gains or losses
D)all of the above

Question

Quizplus · Accepted Answer

Translation gains or losses occur as a result of changes in the value of currency when financial statements of a subsidiary or branch are translated into the reporting currency. Operating gains or losses, on the other hand, arise from the core business operations and are not related to currency fluctuations. Swap losses and gains are related to a specific financial instrument used to hedge against currency risk and may not necessarily reflect ongoing business activities. Therefore, option C is the best choice.

________ Occur as a Result of Changes in the Value