CFAS PAS 21

14問 • 2年前

問題一覧

The objective of PAS 21 is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency.

TRUE

The currency of the primary economic environment in which the entity operates

FUNCTIONAL CURRENCY

The currency in which financial statements are presented

PRESENTATION CURRENCY

The difference resulting from translating a given number of units of one currency into another currency at different exchange rates

EXCHANGE DIFFERENCE

A subsidiary, associate, joint venture, or branch whose activities are based in a country or currency other than that of the reporting entity

FOREIGN OPERATION

Basic steps for translating foreign currency amounts into the functional currency; I.) the reporting entity determines its functional currency II.) the reporting entity determines its foreign currency III.) the entity translates all foreign currency items into its functional currency IV.) the entity translates all presentation currency items into its functional currency V.) the entity reports the effects of such translation

I,III,V

A foreign currency transaction should be recorded INITIALLY AT THE RATE OF EXCHANGE AT THE DATE OF THE TRANSLATION (use of averages is permitted if they are a reasonable approximation of actual).

TRUE

At each subsequent balance sheet date: I.) Foreign currency monetary amounts should be reported using the closing rate II.) Foreign currency monetary amounts should be reported using the opening rate III.) non-monetary items carried at historical cost should be reported using the market rate at the date of the transaction IV.) non-monetary items carried at historical cost should be reported using the exchange rate at the date of the transaction V.) non-monetary items carried at fair value should be reported at the rate that existed when the fair values were not determined. VI.) non-monetary items carried at fair value should be reported at the rate that existed when the fair values were determined.

I,IV,VI

FALSE

Exchange differences arising when monetary items are settled or when monetary items are translated at rates different from those at which they were translated when initially recognized or in previous financial statements are REPORTED IN PROFIT OR LOSS IN THE PERIOD, with one exception. The exception is that exchange differences arising on monetary items that form part of the reporting entity's net investment in a foreign operation are recognized, in the consolidated financial statements that include the foreign operation, IN OTHER COMPREHENSIVE INCOME; they will be recognized in profit or loss on disposal of the net investment.

TRUE

If a gain or loss on a non-monetary item is recognized in other comprehensive income, any foreign exchange component of that gain or loss is also recognized in other comprehensive income.

TRUE

Translation from the functional currency to the presentation currency: ASSETS AND LIABILITIES for each balance sheet presented (including comparatives) are translated at the closing rate at the date of that balance sheet. This would include any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as part of the assets and liabilities of the foreign operation

TRUE

INCOME AND EXPENSES for each income statement (including comparatives) are translated at exchange rates at the dates of the transactions

TRUE

All resulting exchange differences are recognized in other comprehensive income.

TRUE

VITMOLOGY-PPT2

Anndrea S. Galupo · 22問 · 1年前

VITMOLOGY-PPT2