The CICA handbook section 1650 contains recommendations on procedure and accounting policy in regard to foreign operations of Canadian companies:
(i)- measure in dollars an enterprise's assets, liabilities, revenues, or expenses that are denominated in a foreign currency according to generally accepted accounting principles
(ii)- uses the temporal method of translation
(iii)- provide information that is generally compatible with the expected economic effects of a rate change on an enterprise's cash flows and equity
(iv)- uses the current rate method
-Which of the above statements pertain to self-sustaining foreign operations?
A) (i)
B) (i) and (ii)
C) (iii) and (iv)
D) (i), (ii), and (iii)

Question

Quizplus · Accepted Answer

(i) pertains to both self-sustaining and integrated foreign operations. 
(ii) pertains only to integrated foreign operations, where the functional currency is different from the reporting currency. 
(iii) pertains to self-sustaining foreign operations, where the effects of exchange rate changes are primarily on cash flows, rather than on the translation of foreign currency financial statements. 
(iv) pertains only to integrated foreign operations, where the functional currency is the same as the reporting currency. Therefore, only (iii) and (iv) pertain to self-sustaining foreign operations.

The CICA Handbook Section 1650 Contains Recommendations on Procedure and Accounting