What is the correct order in the steps for translating foreign currency financial statements?
1) Translate all foreign currency items from the entity's functional currency into the presentation currency, if different.
2) Translate all foreign currency items into the entity's functional currency.
3) Report the effects of such translation in accordance with IAS 21.
4) Determine the entity's functional currency.
A) 1, 2, 3, 4
B) 4, 2, 1, 3
C) 2, 4, 1, 3
D) 3, 1, 2, 3

Question

Quizplus · Accepted Answer

The correct order starts with determining the entity's functional currency, then translating all foreign currency items into this functional currency, followed by translating these items into the presentation currency if it's different, and finally reporting the effects of such translation in accordance with IAS 21.

What Is the Correct Order in the Steps for Translating