Yarra Manufacturing Ltd is an Australian registered entity that has a branch in Singapore,Kew Ltd.Kew Ltd has a foreign operation in China.The foreign operation maintains its accounting records in Chinese yuan.The functional currency of the Chinese operation is Singapore dollar.The presentation currency of Kew Ltd is Australian dollar. At reporting date,the translation of the financial statements of the Chinese foreign operation resulted in a loss of S$6500 and the translation of the financial statements of Kew Ltd to its presentation currency resulted to a gain of A$4500.
Which of the following results is consistent with AASB 121 with respect to Yarra Manufacturing Ltd?
A) Loss of S$6500 should be recognised in profit and loss.
B) Loss of S$6500 should be recognised in comprehensive income.
C) Gain of A$4500 should be recognised in profit and loss.
D) Gain of A$4500 should be recognised in comprehensive income.

Question

Quizplus · Accepted Answer

The Answer of Yarra Manufacturing Ltd is an Australian registered entity that has a branch in Singapore,Kew Ltd.Kew Ltd has a foreign operation in China.The foreign operation maintains its accounting records in Chinese yuan.The functional currency of the Chinese operation is Singapore dollar.The presentation currency of Kew Ltd is Australian dollar. At reporting date,the translation of the financial statements of the Chinese foreign operation resulted in a loss of S$6500 and the translation of the financial statements of Kew Ltd to its presentation currency resulted to a gain of A$4500.
Which of the following results is consistent with AASB 121 with respect to Yarra Manufacturing Ltd?
A) Loss of S$6500 should be recognised in profit and loss.
B) Loss of S$6500 should be recognised in comprehensive income.
C) Gain of A$4500 should be recognised in profit and loss.
D) Gain of A$4500 should be recognised in comprehensive income.

Yarra Manufacturing Ltd Is an Australian Registered Entity That Has