CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the following is (are) remeasured/translated at an average exchange rate under both the temporal and the all current rate?

I. Sales.
II. COGS and depreciation expense.
III. Statement of cash flows.
IV. Monetary assets.
A. I and II
B. III and IV
C. I and III
Explanation: Monetary assets are translated at the current exchange rate and COGS and depreciation are remeasured using historical exchange rates under the temporal method.

User Contributed Comments 3

User Comment
bartyi shouldn't iv be included as well because it is monetary asset and temporal and current metthod uses the current rate.
bhmcfa bartyi: the question says "translated at an average exchange rate."
mrpman why is 2 an option. the answer says COGS and DEPR exp are both translated at historical rate, only sales would be average rate. Can anyone advise?
You need to log in first to add your comment.