Under AASB 121/IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity must disclose which of the following items in particular? I. The amount of exchange differences included in profit or loss of the period.
II) The amount of the exchange difference included directly in share capital during the period.
III) Whether a change in the functional currency has occurred.
IV) The reason for using a presentation currency that is different from the functional currency.
A) I, II, III and IV
B) II and III only
C) I, III and IV only
D) I and IV only

Question

Quizplus · Accepted Answer

Under AASB 121/IAS 21, an entity must disclose the amount of exchange differences included in profit or loss of the period (I), whether a change in the functional currency has occurred (III), and the reason for using a presentation currency that is different from the functional currency (IV). However, the amount of the exchange difference included directly in share capital during the period (II) is not specifically required to be disclosed under this standard. Therefore, the best choice is C which includes options I, III, and IV.

Under AASB 121/IAS 21 the Effects of Changes in Foreign