The CICA handbook section 1650 contains recommendations on procedure and accounting policy in regard to foreign operations of Canadian companies:
(i)- measure in dollars an enterprise's assets, liabilities, revenues, or expenses that are denominated in a foreign currency according to generally accepted accounting principles
(ii)- uses the temporal method of translation
(iii)- provide information that is generally compatible with the expected economic effects of a rate change on an enterprise's cash flows and equity
(iv)- uses the current rate method
-Which of the above statements pertains to integrated foreign operations?
A) (i)
B) (i) and (ii)
C) (iii) and (iv)
D) (i), (ii), and (iii)

Question

Quizplus · Accepted Answer

Integrated foreign operations typically use the temporal method of translation, as they are closely integrated with the parent company's operations. This method involves translating monetary items at the exchange rate at the balance sheet date and non-monetary items at historical rates. Statement (i) is a general principle that applies to all foreign currency transactions, including those of integrated foreign operations.

The CICA Handbook Section 1650 Contains Recommendations on Procedure and Accounting