For a self-sustaining foreign operation (i.e., the functional currency of the foreign operation is different than the parent), exchange gains and losses are to be included in or along with:
A) other comprehensive income.
B) an exchange account.
C) non-controlling interest.
D)the acquisition differential amortization.

Question

Quizplus · Accepted Answer

Exchange gains and losses for a self-sustaining foreign operation are reported as part of other comprehensive income, as they reflect changes in the value of the foreign currency. This is in accordance with the accounting standard IAS 21, The Effects of Changes in Foreign Exchange Rates.

For a Self-Sustaining Foreign Operation (I