Which of the following statements is incorrect?
A) The relevant accounting standard applied in translating financial statements into another currency is AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates.
B) The financial statements of an entity may be recorded in a foreign currency and translated into Australian dollars for the purpose of combining those statements with the financial statements of a related Australian company.
C) Not many companies in Australia have operations in both Australia and overseas locations.
D) The financial statements of an Australian company may be prepared in Australian dollars and translated into a foreign currency for presentation purposes.

Question

Quizplus · Accepted Answer

The statement that "not many companies in Australia have operations in both Australia and overseas locations" is incorrect. Many Australian companies have operations in other countries and therefore have to deal with foreign currency transactions and translations into Australian dollars.

Which of the Following Statements Is Incorrect