Aussie Ltd has an investment in Yankee Inc. The shares in Yankee were acquired on 15 August 20X4. Yankee uses the revaluation model to account for land & buildings. A building which was acquired by Yankee on 1 April 20X2 was revalued on 15 March 20X9. The exchange rate used to translate the building into the presentation currency at 30 June 20X9 is the rate that applied on:
A) 1 April 20X2
B) 15 August 20X4
C) 15 March 20X9
D) 30 June 20X9

Question

Quizplus · Accepted Answer

The exchange rate used to translate the building into the presentation currency at 30 June 20X9 is the rate that applied on the reporting date, which is 30 June 20X9.

Aussie Ltd Has an Investment in Yankee Inc