IAS 21 – Foreign Exchange – Theory – 1

The International Accounting Standards Board __________ the scope of IAS 21 foreign currency derivatives __________ the material on hedge accounting.

In which of the following ways can an entity carry on foreign operations?

Which of the following is an objective of IAS 21?

Which of the following is not a principal issue of IAS 21?

Under which of the following circumstances shall IAS 21 be applied?

Which of the following statements is not correct?

IAS 21 applies to the presentation in a statement of cash flows of the cash flows arising from transactions in a foreign currency, or to the translation of cash flows of a foreign operation.

Which of the following terms are defined by the statement: “The currency of the primary economic environment in which the entity operates”?

Exchange rate is the ratio of exchange for __________.

Which of the following factors shall the entity consider in determining its functional currency?