Give me answer please A change in functional currency is applied?a) Retrospectivelyb) At year end onlyc) Prospectively from date of changed) Based on management choice

Explanation of Functional Currency: Functional currency is the primary currency in which an entity…

Answered: A change in functional currency is…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 14QE

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Question 6 Which of the following statements is FALSE with respect to the accounting for a change in the functional currency? The effect of a change in functional currency is accounted for prospectively Once the functional currency is determined, it can be changed even if there is no change to the underlying transactions, events and conditions Once the functional currency is determined, it can be changed only if there is a change to the underlying transactions, events and conditions When there is a change in an entity's functional currency, exchange differences arising from the translation previously recognized in other comprehensive income are not immediately reclassified from equity to profit or loss
Differentiate between devaluation/revaluation of a currency and depreciation/appreciation of a currency.
Which of the following is NOT an indicator used in determining the functional currency? • a. financing O b. operating costs O c. competition and regulations O d. investments
Choose the correct option
Which method of the matching principle is used when a company recognizes depreciation expense on the income statement? Group of answer choices A. Installment method B. Systematic and rational allocation C. Immediate recognition D. Associating cause and effect
Explain the ‘qualifying asset’ and how do we treat exchange rate differences relating to the acquisition of qualifying assets? Compare and contrast this with the treatment for assets that are not qualifying assets?Give your answer as per AASB 123
Which of the following would appear as a prior period adjustment? Group of answer choices a correction in the calculation of earnings per share of a prior period a material difference between the actual and estimated uncollectible accounts receivable a material loss resulting from the sale of fixed assets which were acquired in a prior period material error in the computation of depreciation expense in the Year 1 that was discovered and corrected in the Year 3
!?
Do U.S. GAAP and IFRS differ in the criteria they use to determine whether a transfer of receivables is treated as a sale? Explain.
AASB 13 defines exit price as: Select one: A. The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. B. The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. C. The price that would be received to sell an asset or paid to transfer a liability. D. A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g., a forced liquidation or distress sale).
Match the following challenges in revenue recognition with their corresponding aspects: A. Determining appropriate recognition criteria B. Estimating the fair value of variable considerations C. Identifying and allocating revenue to each performance obligation D. Monitoring and reassessing estimates over time 1. Matching with A: • Option: 2. Matching with B: Option: 3. Matching with C: • Option: 4. Matching with D: Option: ● Options: A) Determining appropriate recognition criteria B) Estimating the fair value of variable considerations C) Identifying and allocating revenue to each performance obligation D) Monitoring and reassessing estimates over time Choose the correct combination: 1. A-B, B-C, C-D, D-A 2. A-C, B-D, C-A, D-B 3. A-D, B-C, C-A, D-B 4. A-B, B-D, C-A, D-C
Which of the following is an economic motivation for an acquisition? Using a cash surplus. b. Diversification. c. Economies of scale. d. All of these choices.

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A change in functional currency is applied? a) Retrospectively b) At year end only c) Prospectively from date of change d) Based on management choice