Which combination of accounts and exchange rates is correct for the remeasurement of a foreign entity's financial statements from its recording currency to U.S.dollars?

A)Option A
B)Option B
C)Option C
D)Option D

Question

Which combination of accounts and exchange rates is correct for the remeasurement of a foreign entity's financial statements from its recording currency to U.S.dollars?

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Option C is the correct combination because it uses the functional currency exchange rate for the balance sheet accounts and the average exchange rate for the income statement accounts, which is in accordance with IFRS standards for remeasurement of foreign financial statements. Option A uses the historical exchange rate for all accounts, while Option B uses the functional currency exchange rate for all accounts. Option D uses the average exchange rate for all accounts, which is not in accordance with IFRS standards.

Which Combination of Accounts and Exchange Rates Is Correct for the Remeasurement