CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 17 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 17
Topic #: 1

Which TWO of the following are true in relation to IAS21 The Effects of Changes in Foreign Exchange Rates when consolidating an overseas subsidiary?

AAcurrent period exchange gain or loss is shown within the consolidated statement of comprehensive income within other comprehensive income.

BGoodwill is re-translated at the end of each reporting period and reflected at the period end exchange rate in the consolidated statement of financial position.

CAssets and liabilities of the subsidiary are translated at each reporting date using the average exchange rate for the period.

DGoodwill is reflected in the consolidated statement of financial position translated at the exchange rate on the date of acquisition.

EThe statement of profit or loss of the subsidiary is translated for the reporting period using the closing exchange rate.

Show Suggested Answer

Suggested Answer: A, B

by Josephine at May 09, 2022, 09:57 AM

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