IAS 21 - EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES

1. For reporting purposes, currencies are defined as a. International and functional b. Foreign, functional and presentation c. Domestic and international d. Operating, international and presentation - b. 2. The functional currency is a. The currency in which the entity reports earnings b. The currency in which the entity primarily conducts banking activities c. The currency in which the entity primarily operates d. The currency in which the entity presents the financial statements - c. 3. Under IFRS, how is presentation currency defined? a. The currency of the primary environment in which the entity operates b. The currency in which financial statements are presented c. A currency other than the functional currency d. The currency that uses the current rate - b. 4. Which consideration would not be relevant in determining the entity's functional currency?