11. If foreign currency denominated non-monetary items measured using the : 2102193
11. If foreign currency denominated non-monetary items are measured using the fair value method, they must be translated into the functional currency using the:
a. exchange rate at the date when the value was determined;
b. exchange rate current at end of reporting period;
c. closing exchange rate for the financial year;
d. exchange rate at the transaction date.
12. When translating the revenue and expenses in the statement of profit or loss and other comprehensive income, theoretically each item of revenue and expense should be translated using the spot exchange rate between the:
a. functional currency and the foreign currency on the reporting date;
b. presentation currency and the functional currency on the reporting date;
c. functional currency and the foreign currency on the date the transaction occurred;
d. presentation currency and the local currency on the transaction date.
13. By applying the definition provided in AASB 121 The Effects of Changes in Foreign Exchange Rates, the following items will be regarded as a monetary item:
a. property, plant and equipment;
b. land and buildings;
d. accounts receivable.
14. The general rule for translating liabilities denominated in a foreign currency into the functional currency is to:
a. translate all liabilities using the current rate existing at end of reporting period;
b. first classify the liabilities into current and non-current;
c. first classify the liabilities as monetary or non-monetary;
d. translate all liabilities using the rate current on entering into the transaction.
15. Differences arise in relation to the treatment of which of the following when translating from the local to functional currency as opposed to the functional to presentation currency?
a. accounts receivable
b. cost of goods sold
c. depreciation expense
d. share capital