6. When translating into the functional currency foreign currency denominated : 2102192
6. When translating into the functional currency foreign currency denominated non-monetary items measured using historical cost must be translated using the:
a. rate current at end of reporting period;
b. average rate for the reporting period;
c. exchange rate at the date of the transaction;
d. rate prevailing at the end of the last financial year.
7. Monetary items are best described as:
a. plant and equipment;
b. units of currency held and assets and liabilities to be received or paid in fixed numbers of currency units;
c. all intangible items including goodwill;
d. all items that are contingent in nature.
8. Post acquisition date retained earnings that are denominated in a foreign currency are:
a. translated into the functional currency using the rate current at the latest end of reporting period;
b. translated into the functional currency using the average rate since acquisition date;
c. translated into the functional currency using the rates at the end of each year since acquisition date;
d. balances carried forward from translation of previous statement of comprehensive income and do not need to be translated.
9. When translating into the functional currency monetary liabilities are translated using the:
a. exchange rate current at the date the item was first recorded;
b. exchange rate prevailing at the end of the last reporting period;
c. closing exchange rate;
d. exchange rate current at end of reporting period.
10. When translating foreign currency denominated financial statements into the functional currency, the exchange differences are recognised:
a. as an item of gain or loss in the statement of profit or loss and other comprehensive income;
b. directly in the retained earnings account;
c. as a deferred asset or liability;
d. as a separate component of equity.