Foreign currency transactions Flashcards
1
Q
What are foreign currency transactions?
A
Transactions denominated it a currency other than an entity’s functional currency.
2
Q
How would a gain on remeasurement of a foreign subsidiary financial statement from the local currency into the functional currency be classified in the financial statements?
A
As income from continuing operations.
There would also be separate disclosure of the remeasurement on the face of the statements or in the notes.
3
Q
What is the definition for functional currency?
A
The currency of the primary economic environment in which the entity operates.
The environment in which the entity generates and expends cash.
