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Financial Reporting

Business

Quiz 24 :

Translation of Foreign Currency Financial Statements

Quiz 24 :

Translation of Foreign Currency Financial Statements

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The financial statements of a foreign subsidiary with an Australian parent company must:
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Multiple Choice
Answer:

Answer:

B

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Which of the following is not an activity economic indicator for determining the functional currency?
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Multiple Choice
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Answer:

B

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When translating into the presentation currency the translation difference is recognised:
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Multiple Choice
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Answer:

C

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Which of the following items will be regarded as a monetary item when applying the definition provided in AASB 121 The Effects of Changes in Foreign Exchange Rates?
Multiple Choice
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When translating into the functional currency, monetary liabilities are translated using the:
Multiple Choice
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Banjo Ltd acquired 100% of Wellington Ltd on 1 July 2021. The balance sheet of Wellington Ltd on that date was as follows: img The balance sheet of Wellington Ltd as at 30 June 2022 is as follows: Balance sheet as at 30 June 2022 img Relevant exchange rates are as follows: img If the local currency of Wellington Ltd is New Zealand dollars and the functional currency is Australian dollars the total assets of NZ$1,800,000 would translate into Australian dollars as:
Multiple Choice
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When translating the revenue and expenses in the statement of profit or loss and other comprehensive income, theoretically each item of revenue and expense should be translated using the spot exchange rate between the:
Multiple Choice
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Which of the following factors should be considered when determining the functional currency?
Multiple Choice
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Bondi Ltd has an investment in Christchurch Ltd. The shares in Christchurch were acquired on 15 April 2074. Christchurch uses the revaluation model to account for equipment. Equipment acquired by Christchurch on 1 May 2015 was revalued on 25 May 2022. The exchange rate used to translate the building into the presentation currency for the year ending 30 June 2022 is the rate that applied on:
Multiple Choice
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Banjo Ltd acquired 100% of Wellington Ltd on 1 July 2021. The balance sheet of Wellington Ltd on that date was as follows: img The balance sheet of Wellington Ltd as at 30 June 2022 is as follows: Balance sheet as at 30 June 2022 img Relevant exchange rates are as follows: img If the functional currency of Wellington Ltd is New Zealand dollars and the presentation currency is Australian dollars the total assets of NZ$1,800 000 would translate into Australian dollars as:
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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When translating from the local to functional currency as opposed to the functional to presentation currency differences arise in relation to the treatment of which of the following?
Multiple Choice
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According to AASB 121 The Effects of Changes in Foreign Exchange Rates, the currency in which the financial statements are presented by the reporting entity is the:
Multiple Choice
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If foreign currency denominated non-monetary items are measured using the fair value method, they must be translated into the functional currency using the:
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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When translating into the functional currency, foreign currency denominated non-monetary items measured using historical cost must be translated using the:
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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Monetary items are best described as:
Multiple Choice
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According to AASB 121 The Effects of Changes in Foreign Exchange Rates, the currency of the primary economic environment in which the foreign entity operates is the:
Multiple Choice
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Indicators pointing towards the local overseas currency as the functional currency include: I. Parent's cash flows are directly affected on a current basis. II. Production costs are determined primarily by local conditions. III. Sales prices are primarily responsive to exchange rate changes in the short-term. IV. Cash flows are primarily in the local currency and do not affect the parent's cash flows.
Multiple Choice
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