Which of the following considerations would not be relevant in determining the entity's functional currency? The currency that influences the costs of entity O The currency that is most internationally acceptable for trading The currency in which receipts from operating activities are retained O The currency in which finance or fund is generated

Which of the following considerations would not be relevant in determining the entity's functional currency? The currency that influences the costs of entity O The currency that is most internationally acceptable for trading The currency in which receipts from operating activities are retained O The currency in which finance or fund is generated

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter8: Subprime Lending Fiasco-ethics Issues

Section: Chapter Questions

Problem 3.12EC

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Foreign operations that are an integral part of the operations of the entity would have the same functional currency as the entity. Where a foreign operation functions independently from the parent, the functional currency will be: That of the country of incorporation. That of the parent. The same as the presentation currency Determined using the guidance for determining an entity’s functional currency.
Explain “functional currency” and suggest one indicator that an entity may consider to determine its functional currency
MCQs An entity's functional currency is the currency of the primary economic environment in which the entity operates the currency on which the financial statements have been prepared the currency in the domicile country of the entity all of these According to PAS 21, a reporting entity shall have only one functional currency shall have only one presentation currency may present its financial statements using any presentation currency it wishes a and c The following are ways of conducting foreign activities Engaging in foreign currency-denominated transactions having foreign operations sending personnel abroad for training and conferences a and b According to PAS 21, a reporting entity is required to identify its functional currency encouraged to identify its fuctional currency required to identify its presentation currency a and c
What is a subsidiary’s functional currency? Choose the correcta. The parent’s reporting currency.b. The currency used by the parent to acquire the subsidiary.c. The currency in which the entity primarily generates and expends cash.d. Always the currency of the country in which the company has its headquarters.
Please focus on Goodwill when you answer the question below and when you apply an example to it. The question: Explain and analyze the effect of major differences between IFRS and U.S. GAAP on Financial statements in terms of Definition, recognition, Measurement, and alternative methods of measrument (if allowed), the requirements, the presentation of the items in financial statements, and disclosure in the notes of the financial statements.
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The currency in which most of the inflows and outflows of the entity is denominated pertains to transaction currency. TRUE OR FALSE
A) Explain the concepts of Local Currency, Functional Currency and Presentation Currency with suitable examples. B) Explain the rule for translating the Financial Statements of Foreign Operations from Local Currency to Functional Currency. C) Explain the rule for translating the Financial Statements of Foreign Operations from Functional Currency to Presentation Currency.
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What is a subsidiary’s functional currency?a. The parent’s reporting currency.b. The currency used by the parent to acquire the subsidiary.c. The currency in which the entity primarily generates and expends cash.d. Always the currency of the country in which the company has its headquarters.
Exchange difference arising from the translation of financial statements of a foreign operation into the presentation currency of the reporting entity shall be accounted for as Group of answer choices Translation gain or loss as a component of profit or loss Transaction gain or loss as component of other comprehensive income Translation gain or loss as a component of other comprehensive income Transaction gain or loss as component of profit or loss
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