Exam IIA-CIA-Part3 Topic 9 Question 196 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam
Question #: 196
Topic #: 9
A reporting entity consolidates a foreign operation. This operation maintains its books its functional currency, which not that of a hyperinflationary economy. How should the amounts in the foreign operation's financial statements be translated into the presentation currency?

Suggested Answer: C Vote an answer

An exchange difference arises when a given amount of one currency is translated into another currency at different rates. Exchange differences are recognized in a separate component of equity when they arise from translation of functional currency amounts into the presentation amounts. Such exchange difference are not recognized in profit or loss because they have little, if any, direct effect on operational case flows.

by Ted at Feb 29, 2024, 07:43 AM

Limited Time Offer

15%

Off

Get Premium IIA-CIA-Part3 Questions as Interactive Self Test Engine or PDF

Comments

Chosen Answer:
This is a voting comment (?) , you can switch to a simple comment.
Switch to a voting comment New
Nick name: Submit Cancel
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
0
0
0
10