The net assets of a foreign operation at 30 June 2015 are constituted as assets of US$400 000 and liabilities of US$250 000. The parent entity purchased the foreign subsidiary on 1 July 2012. Exchange rate information is as follows:The foreign operation has not traded during the year ended 30 June 2015, so the net assets remained unchanged during the period. What is the parent entity's foreign currency exposure for the year ended 30 June 2015?Select one:a. foreign exchange loss A$6002b. foreign exchange gain A$20 610c. foreign exchange gain A$342 310d. foreign exchange gain A$197 185
The net assets of a foreign operation at 30 June 2015 are constituted as assets of US$400 000 and liabilities of US$250 000. The parent entity purchased the foreign subsidiary on 1 July 2012. Exchange rate information is as follows:The foreign operation has not traded during the year ended 30 June 2015, so the net assets remained unchanged during the period. What is the parent entity's foreign currency exposure for the year ended 30 June 2015?Select one:a. foreign exchange loss A$6002b. foreign exchange gain A$20 610c. foreign exchange gain A$342 310d. foreign exchange gain A$197 185
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 24PC
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The net assets of a foreign operation at 30 June 2015 are constituted as assets of US$400 000 and liabilities of US$250 000. The parent entity purchased the foreign subsidiary on 1 July 2012. Exchange rate information is as follows:The foreign operation has not traded during the year ended 30 June 2015, so the net assets remained unchanged during the period. What is the parent entity's foreign currency exposure for the year ended 30 June 2015?Select one:a. foreign exchange loss A$6002b. foreign exchange gain A$20 610c. foreign exchange gain A$342 310d. foreign exchange gain A$197 185
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