Currency Exchange Rates Paper 7

1

When remeasuring foreign currency financial statements into the functional currency, which of the following items would be remeasured using historical exchange rate?






2

Park Co.’s wholly owned subsidiary, Schnell Corp., maintains its accounting records in euros. Because all of Schnell’s branch offices are in Switzerland, its functional currency is the Swiss franc. Remeasurement of Schnell’s year 1 financial statements resulted in a $7,600 gain, and translation of its financial statements resulted in an $8,100 gain. What amount should Park report as a foreign exchange gain as net income in its income statement for the year ended December 31, year 1?






3

In preparing consolidated financial statements of a US parent company with a foreign subsidiary, the foreign subsidiary’s functional currency is the currency






4

For IFRS reporting purposes, currencies are defined as






5

For IFRS reporting, the functional currency is






6

For IFRS reporting, if the functional currency is the same as the presentation currency, any translation gains or losses are generally reported as






7

Which of the following is not a IFRS requirement regarding foreign currency translation?






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