029-Foreign operations

Question 1

IFRS IAS21

ASPE 1651

Answer 1

ASPE no OCI , income statement and

Retained earring

Question 2

Functional currency
Presentation currency

Integrated foreign currency : functional currency = reporting entity

Self Sustaining operations : different

Answer 2

Functional currency - primary economic
Environment, day to day
Presentation currency - reports

Question 3

Monetary items

Non-monetary items

Answer 3

Monetary - receivables , payables
                    Loans
Non-monetary - inventory , 
                             Prepaid expenses
                             PPE
                             Intangible

Question 4

Determine functional currency

Primary factors
Secondary factors

Answer 4

Primary factors
1 currency influences sales prices for goods and services
2 currency of country whose competitive forces and regulations determine sales prices
3 currency mainly influencing input costs

Secondary factors if primary not be determined
1 currency in which funds/receipts
Are generated from financial activities
Are retained for operating activity

Question 5

Self sustaining - current rate

Answer 5

Income - average

Monetary - closing

Non monetary -historical - closing 
                         - fair value -dateofrevaluation
Shares- date of purchase
Retained earring- calculated
Dividend- declaration
Gain/loss- OCI

Question 6

Temporal method(integrated)

Answer 6

Revenue expense- average
Deprecation- date of acquisition

Cost of good sold :
Opening inventory-closed translation
Purchase - average
Close inventory- purchase rate , prior - average

Monetary- closing
Non monetary historical- acquired 
Non monetary fair value- revaluation 
Shares- purchase 
Retained earring - calculate
Dividend- declare 
Gain/loss- net income