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NEW QUESTION: 1
Which TWO of the following are true in relation to IAS21 The Effects of Changes in Foreign Exchange Rates when consolidating an overseas subsidiary?
A. Goodwill is reflected in the consolidated statement of financial position translated at the exchange rate on the date of acquisition.
B. Goodwill is re-translated at the end of each reporting period and reflected at the period end exchange rate in the consolidated statement of financial position.
C. A current period exchange gain or loss is shown within the consolidated statement of comprehensive income within other comprehensive income.
D. The statement of profit or loss of the subsidiary is translated for the reporting period using the closing exchange rate.
E. Assets and liabilities of the subsidiary are translated at each reporting date using the average exchange rate for the period.
Answer: B,C
NEW QUESTION: 2
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