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Company Accounting

Business

Quiz 8 :

Translation of Financial Statements Into a Presentation Currency

Quiz 8 :

Translation of Financial Statements Into a Presentation Currency

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Aussie Ltd acquired 100% of Sing Sing Ltd (Sing Sing) on 1 July 20X0. The balance sheet of Sing Sing as at 30 June 20X1 was as follows. Balance Sheet as at 30 June 20X1 img Relevant exchange rates are as follows. img If the local currency of Sing Sing is Singapore dollars and the functional currency is Australian dollars, the total assets of S$1 800,000 would translate into Australian dollars as:
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Multiple Choice
Answer:

Answer:

B

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The exchange rate at a point of time for immediate delivery of the currency in an exchange is known as the:
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Multiple Choice
Answer:

Answer:

A

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By applying the definition provided in AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates, which of the following items will be regarded as a monetary item?
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Multiple Choice
Answer:

Answer:

D

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Which of the following statements is incorrect?
Multiple Choice
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Where profits generated by the foreign operation are retained in the foreign entity and used for its expansion:
Multiple Choice
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According to the temporal method, monetary assets are translated at the:
Multiple Choice
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Which of the following is an additional question to be asked in determining whether a foreign entity's functional currency is the same as that of the reporting entity?
Multiple Choice
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Assets and liabilities to be received or paid in a fixed or determinable number of units of money are referred to as:
Multiple Choice
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When translating into the functional currency, monetary liabilities are translated using the:
Multiple Choice
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Indicators pointing towards the reporting entity's currency as the functional currency include that which of the following?
Multiple Choice
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Post-acquisition date retained earnings that are denominated in a foreign currency are:
Multiple Choice
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The presentation currency is:
Multiple Choice
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According to AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates, the key economic factor to consider in determining an entity's functional currency is:
Multiple Choice
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When translating into the functional currency, foreign currency denominated non-monetary assets measured at historical cost must be translated using the:
Multiple Choice
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The currency of the country in which the foreign operation is based is referred to as the:
Multiple Choice
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When translating foreign currency denominated financial statements into the functional currency, the exchange differences are recognised:
Multiple Choice
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Which exchange rate should be used when translating revenue and expense items in the statement of profit or loss and other comprehensive income into the functional currency?
Multiple Choice
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The general rule for translating liabilities denominated in a foreign currency into the functional currency is to:
Multiple Choice
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The method used to translate financial statements prepared in the functional currency into the presentation currency is known as the:
Multiple Choice
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If foreign currency denominated non-monetary assets are measured using the fair value method, they must be translated into the functional currency using the:
Multiple Choice
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