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  3. which of the following statements in respect of foreign currency...

Question: which of the following statements in respect of foreign currency...

Question details

Which of the following statements, in respect of foreign currency translation, are correct according to AASB 121 The effects of changes in foreign exchange rates?

I. The functional currency of an entity is selected by management

II. The presentation currency of an entity is selected by management

III. The functional currency of an entity is identified by reference to circumstances of the business

IV. The presentation currency of an entity is identified by reference to circumstances of the business

Select one:
a.

I and II only

b.

I and IV only

c.

II and III only

d.

III and IV only

 

 

 

 

 

In relation to pre-acquisition of a subsidiary entity, which of the following events can cause a change in the pre-acquisition entry subsequent to acquisition date?

I                Transfers from post-acquisition retained earnings

II               Dividends paid from pre-acquisition reserves

III              Transfers from pre-acquisition retained earnings

IV              Impairment of goodwill

Select one:
a.

I, II, III and IV

b.

I, III and IV only

c.

II and III only

d.

III and IV only

 

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