Question

Under AASB 121 The Effects of Changes in Foreign Exchange Rates, an entity must disclose which of the following items in particular? I. The amount of exchange differences included in profit or loss of the period. II. The amount of the exchange difference included directly in share capital during the period. III. Whether a change in the functional currency has occurred. IV. The reason for using a presentation currency that is different from the functional currency. I and IV only. II and III only. I, III and IV only. I, II, III and IV.

Answer 1

Para 52 & 53 of Disclosure section of AASB 121 - The Effects of Changes in Foreign Exchange Rates provides as follows:

52.An entity shall disclose:

(a) the amount of exchange differences recognised in profit or loss except for those arising on financial instruments measured at fair value through profit or loss in accordance with AASB 139; and

(b) net exchange differences classified in a separate component of equity, and a reconciliation of the amount of such exchange differences at the beginning and end of the period.

53. When the presentation currency is different from the functional currency, that fact shall be stated, together with disclosure of the functional currency and the reason for using a different presentation currency.

Thus all the options given above are mentioned in this disclosure. Hence, correct answer is I,II,III,IV