The functional currency is Currency in which the entity reports earnings. The currency in which the entity primarily operates. Matched quizlet The currency in which the entity presents the financial statements. The currency in which the entity primarily conducts banking activities
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- The functional currency is
Currency in which the entity reports earnings.
The currency in which the entity primarily operates. Matched quizlet
The currency in which the entity presents the financial statements.
The currency in which the entity primarily conducts banking activities
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Solved in 2 steps
- 1. For reporting purposes, currencies are defined as Operating, International and presentation Domestic and international Foreign, functional and presentation International and functional 2. The functional currency is Currency in which the entity reports earnings. The currency in which the entity primarily operates. The currency in which the entity presents the financial statements. The currency in which the entity primarily conducts banking activities 3. Which consideration would not be relevant in determining the entity's functional currency? The currency in which receipts from operating activities are retained. The currency in which finance or fund is generated The currency that influences the cost of the entity. The currency that the most internationally acceptable for trading 4. Under IFRS, how is presentation currency defined? The currency in which the financial statements are presented. The currency that uses the current rate The currency of…14. An entity’s functional currency is a. the currency of the primary economic environment in which the entity operates. b. the currency in which the entity uses in presenting its financial statements. c. the currency required by regulatory agencies to be used in financial statements filed by the entity. d. all of these.What are the qualitative characteristics of financial statements according to the Framework? Qualitative characteristics are broad classes of financial effects of transactions and other events Qualitative characteristics are the attributes that make the information provided in financial statements useful to others. Qualitative characteristics measure the extent to which an entity has complied with all relevant Standards and Interpretations. Qualitative characteristics are non-quantitative aspects of an entity’s position and performance and changes in financial position
- How does PFRS 9 distinguish between the measurement methods to be used in the standard? * By reviewing the business model of each entity and the contractual cash flow characteristics of the instrument By reviewing the realisability of the instrument and risks and rewards of ownership By reviewing the realisability and the contractual cash flow characteristics of the instrument By reviewing the business model of each entity and the risks and rewards of the transactionWhich information is reflected in the capital account of the balance of payments? a. Purchases and sales of stocks, bonds, bank accounts, real estate, and businesses. b. Purchases and sales of dollars, foreign exchange, gold, and special drawing rights. c. Export and import of goods and services. d. Capital transfers and the cross-border acquisition and disposal of natural resources and marketing assets.What is the qualitative characteristic of financial statements according to the Framework? a. Qualitative characteristics are broad classes of financial effects of transactions and other events b. Qualitative characteristics are the attributes that make the information provided in financial statements useful to others c. Qualitative characteristics measure the extent to which an entity has complied with all relevant standards. d. Qualitative characteristics are non-quantitative aspects of an entity’s position and performance and changes in financial position.
- Which of the following statements are true regarding financial instruments? (i) Financial instruments comprise of both financial assets and financial liabilities (ii) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (iii) Primary instruments are financial instruments in which an investor has made an investment in a specific instrument. (iv) A derivate instrument is normally linked to a primary instrument and transfers the financial risks inherent in the underlying primary instrument. Select one: a. (i) and (ii) b. (i) and (iii) only c. (i) only d. (i), (ii), (iii) and (iv)5.According to PFRS9 Financial Instruments, a financial instrument is recognized when the entity purchases investments in equity securities when the entity becomes a party to the contractual provisions of the instrument when the entity has a codified business model with an objective of holding assets in order to collect contractual cash flows all of theseInvestments in equity instruments are financial assets because they are Group of answer choices Cash equivalents. Contractual rights to receive cash or another financial asset from another entity. Equity instruments of another entity. Contractual rights to exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the entity.
- Identify the major types of Off-Balance Sheet (OBS) activities engaged by a financial institution and discuss what a FI hopes to achieve with the use of OBS activities.Which of the following statements is correct? I. To enable users of financial statements to form a view about the effects of related party relationships on an entity, it is appropriate to disclose the related party relationship when control exists, irrespective of whether there have been transactions between the related parties. II. If there have been transactions between related parties, an entity shall disclose the nature of the related party relationship as well as information about the transactions and outstanding balances necessary for an understanding of the potential effect of the relationship on the financial statements. III. Disclosures that related party transactions were made on terms equivalent to those that prevail in arm’s length transactions are encouraged by GAAP. IV. Government-controlled entities are within the scope of IFRSs, i.e. those that are profit-oriented are no longer exempted from disclosing transactions with other state-controlled entities.investments in equity instruments are financial assets because they are a) cash equivalents b) contractual rights to receive cash or another financial asset from another entity c) contractual rights to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity d) an equity instrument of another entity
