The amount of a foreign operation's post-acquisition retained earnings as translated into Australian dollars will depend on the amount translated from the income statement:

Question

Quizplus · Accepted Answer

The amount of post-acquisition retained earnings of a foreign operation, when translated into Australian dollars, will depend on the translation of the income statement. Retained earnings are a part of equity in the balance sheet, and their translation depends on the translation of the income statement. Therefore, option A is correct.

The Amount of a Foreign Operation's Post-Acquisition Retained Earnings as Translated