24.q

Under the temporal method, income statement items that relate to derecognized assets and liabilities generally are remeasured using the:

Multiple Choice

• average exchange rate.

• historical exchange rate.

• current exchange rate.

• lowest exchange rate for the period.

25.q

Which method of translating or remeasuring foreign currency denominated amounts may lead to revenue and cost of goods sold being translated/remeasured at different exchange rates?

Multiple Choice

• The current rate method.

• Both the current rate and the temporal methods.

• Revenue and cost of goods must be translated/remeasured using the same rate.

• The temporal method.

26.q

Under the temporal method, remeasurement exposure is equal to:

Multiple Choice

• nonmonetary assets.

• net nonmonetary assets.

• net monetary assets.

• monetary assets.