Question: The following is an extract from the 'Notes to the Accounts' explaining the calculation of the gain or loss on translation from a functional currency

The following is an extract from the 'Notes to the Accounts' explaining the calculation of the gain or loss on translation from a functional currency into a presentation currency for the year ending 30 June 2019:

Net assets at 30 June 2019 at (i)rate (800 x 2.30) $1 840

LessComponents of Net Assets at their (ii)rates

- Share Capital 500 x 2.00 -$1 000

- Closing Retained Earnings -$710

Translation Gain $130

What are the rates represented by (i) and (ii) above?

A.(i) Historical; (ii) Current.

B.(i) Forward; (ii) Historical.

C.(i) Current; (ii) Spot.

D.(i) Spot; (ii) Current.

E.(i) Closing; (ii) Historical.

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