Asked by Victoria Ferguson on May 07, 2024
Verified
If the functional currency of a foreign operation is different than the parent's, functional currency, how are exchange gains and losses to be reported?
A) As part of other comprehensive income.
B) In an exchange account.
C) As part of the non-controlling interest.
D) As part of the acquisition differential amortization.
Functional Currency
The primary currency used by a business or unit in its financial statements, reflecting the main economic environment in which it operates.
Exchange Gains
Profits resulting from holding or transacting in foreign currencies when exchange rates move favorably.
Losses Reported
Refers to the financial losses that a company discloses in its income statement over a specific period.
- Calculate the exchange gain or loss arising from the translation of foreign operations' financial statements.
Verified Answer
Learning Objectives
- Calculate the exchange gain or loss arising from the translation of foreign operations' financial statements.
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