{"entries":[{"key":"LX.IAS21.000001","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"OBJECTIVE_QUESTIONS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"understand"},"references":["IAS 21 §1"],"exercise":{"prompt":{"fr":"","en":"Which questions does IAS 21 answer for foreign currency items?","es":""},"explanation":{"fr":"","en":"Rule to remember: IAS 21 says which rate to use and where to record exchange differences (IAS 21, para. 1).","es":""},"common_error":{"fr":"","en":"Giving IAS 21 a role in commercial policy or hedging.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Which rate to use and where to record the resulting differences","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Which currency to invoice a customer in and with what commercial margin","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 sets no commercial policy: it deals with the rate to use and the classification of differences (IAS 21, para. 1).","es":""}},{"id":"C","text":{"fr":"","en":"When to consolidate a foreign subsidiary and under which control criterion","es":""},"correct":false,"feedback":{"fr":"","en":"The scope of consolidation belongs to other standards; IAS 21 settles rates and differences (IAS 21, para. 1).","es":""}},{"id":"D","text":{"fr":"","en":"How to hedge a currency risk and measure the effectiveness of the hedge","es":""},"correct":false,"feedback":{"fr":"","en":"Hedge accounting is outside the scope of IAS 21 (IAS 21, para. 5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000002","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.OBJECT"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SCOPE_TRANSLATION","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-scope"},"references":["IAS 21 §3"],"exercise":{"prompt":{"fr":"","en":"IAS 21 also covers the translation of the results and financial position of a foreign operation included in the entity's statements by consolidation.","es":""},"explanation":{"fr":"","en":"Rule to remember: the scope includes the translation of foreign operations that are consolidated or equity-accounted (IAS 21, para. 3).","es":""},"common_error":{"fr":"","en":"Reserving the standard for foreign currency invoices only.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000003","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.TERMS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"FOREIGN_CURRENCY_TRANSACTION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-terms"},"references":["IAS 21 §20","IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"For an entity whose functional currency is the Canadian dollar, which of these is a foreign currency transaction?","es":""},"explanation":{"fr":"","en":"Rule to remember: a foreign currency transaction is denominated or settled in a currency other than the functional currency (IAS 21, para. 20).","es":""},"common_error":{"fr":"","en":"Judging foreignness by the nationality or country of the counterparty.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A purchase of inventory priced in Canadian dollars","es":""},"correct":false,"feedback":{"fr":"","en":"The price is denominated in the functional currency: it is not a foreign currency transaction (IAS 21, para. 20).","es":""}},{"id":"B","text":{"fr":"","en":"A sale to a customer based in Germany, invoiced in Canadian dollars","es":""},"correct":false,"feedback":{"fr":"","en":"The customer's country does not matter: the invoice is in the functional currency, so it is not a foreign currency transaction (IAS 21, para. 20).","es":""}},{"id":"C","text":{"fr":"","en":"A loan of funds denominated in yen","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The payment of a salary in Canadian dollars to an employee of Japanese nationality","es":""},"correct":false,"feedback":{"fr":"","en":"The employee's nationality has no effect: payment is in the functional currency (IAS 21, para. 20).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000004","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.TERMS","IAS21.DEFINITIONS.FOREIGN_OPERATION","IAS21.SCOPE.OBJECT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"THREE_SITUATIONS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"example"},"references":["IAS 21 §20","IAS 21 §8","IAS 21 §3"],"exercise":{"prompt":{"fr":"","en":"Classify each fact of the company Dorvane (functional currency: the euro) in the IAS 21 situation it illustrates.","es":""},"explanation":{"fr":"","en":"Rule to remember: three situations: foreign currency transaction, foreign operation to be translated, translation into the presentation currency (IAS 21, paras. 3 and 20).","es":""},"common_error":{"fr":"","en":"Mixing up the foreign currency loan (transaction) and the foreign subsidiary (operation to be translated).","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Foreign currency transaction","es":""}},{"id":"c2","text":{"fr":"","en":"Foreign operation to be translated","es":""}},{"id":"c3","text":{"fr":"","en":"Translation into the presentation currency","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Dorvane buys materials whose price is set in yen","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"It borrows funds denominated in Swiss francs","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Its Norwegian subsidiary carries out its activities in Norwegian krone","es":""},"category":"c2"},{"id":"i4","text":{"fr":"","en":"Its Singapore branch keeps its books in Singapore dollars","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"The group chooses to publish its financial statements in US dollars","es":""},"category":"c3"},{"id":"i6","text":{"fr":"","en":"Accounts kept in euros are expressed in another currency for publication","es":""},"category":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000005","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.TERMS","IAS21.DEFINITIONS.FOREIGN_OPERATION"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"TERMS_MATCH","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-terms"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"Match each term with its meaning.","es":""},"explanation":{"fr":"","en":"Rule to remember: these four terms mark out the scope of the standard (IAS 21, para. 8).","es":""},"common_error":{"fr":"","en":"Linking the presentation currency to the functional currency.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Foreign currency","es":""}},{"id":"l2","text":{"fr":"","en":"Spot rate","es":""}},{"id":"l3","text":{"fr":"","en":"Foreign operation","es":""}},{"id":"l4","text":{"fr":"","en":"Presentation currency","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"Subsidiary, associate, joint arrangement or branch operating in another country or currency","es":""}},{"id":"r4","text":{"fr":"","en":"Currency in which the financial statements are presented","es":""}},{"id":"r1","text":{"fr":"","en":"Any currency other than the entity's functional currency","es":""}},{"id":"r2","text":{"fr":"","en":"Exchange rate for immediate delivery","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000006","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.DERIVATIVES_EXCLUSION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DERIVATIVES_EXCLUDED","difficulty":"INTERMEDIATE","estimated_time_s":55,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-exclusions"},"references":["IAS 21 §4"],"exercise":{"prompt":{"fr":"","en":"An entity holds a currency forward contract that falls under IFRS 9. What does IAS 21 provide for this derivative?","es":""},"explanation":{"fr":"","en":"Rule to remember: foreign currency derivatives within IFRS 9 are excluded from the scope of IAS 21 (IAS 21, para. 4).","es":""},"common_error":{"fr":"","en":"Applying IAS 21 to a derivative within IFRS 9.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is included and translated at the closing rate","es":""},"correct":false,"feedback":{"fr":"","en":"A derivative within IFRS 9 is excluded from the scope of IAS 21; it is therefore not translated there (IAS 21, para. 4).","es":""}},{"id":"B","text":{"fr":"","en":"It is included and its differences go to other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion leaves IAS 21 with no rule for this derivative; no classification of difference follows (IAS 21, para. 4).","es":""}},{"id":"C","text":{"fr":"","en":"It is included only for translating its amounts into the presentation currency","es":""},"correct":false,"feedback":{"fr":"","en":"That inclusion concerns derivatives that are not within IFRS 9; those within IFRS 9 are excluded (IAS 21, para. 4).","es":""}},{"id":"D","text":{"fr":"","en":"It is excluded from the scope of IAS 21","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000007","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.HEDGE_ACCOUNTING_EXCLUSION","IAS21.SCOPE.CASH_FLOWS_IAS7"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"HEDGE_AND_CASH_FLOWS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-exclusions"},"references":["IAS 21 §5","IAS 21 §7"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: hedging: IFRS 9 (IAS 21, para. 5); foreign currency cash flows: IAS 7 (IAS 21, para. 7).","es":""},"common_error":{"fr":"","en":"Swapping the two cross-references.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Hedge accounting of foreign currency items belongs to {{b1}}; the presentation of foreign currency cash flows belongs to {{b2}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"IAS 7","es":""}},{"id":"b","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"c","text":{"fr":"","en":"IAS 12","es":""}}],"answer":"b"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"b","text":{"fr":"","en":"IAS 36","es":""}},{"id":"c","text":{"fr":"","en":"IAS 7","es":""}}],"answer":"c"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000008","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.FOREIGN_OPERATION"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"GENERIC","tested_point":"BRANCH_SAME_CURRENCY","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-terms"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"A branch can be a foreign operation only if it keeps its books in a currency different from the reporting entity's.","es":""},"explanation":{"fr":"","en":"Rule to remember: a foreign operation is defined by a country or currency different from the reporting entity's (IAS 21, para. 8).","es":""},"common_error":{"fr":"","en":"Reading “country and currency” where the definition says “country or currency”.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000009","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.SPOT_RATE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SPOT_RATE_DEFINITION","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS21.000002","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-rates"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"Which of these rates is a spot rate?","es":""},"explanation":{"fr":"","en":"Rule to remember: the spot rate is the exchange rate for immediate delivery (IAS 21, para. 8).","es":""},"common_error":{"fr":"","en":"Confusing spot rate and forward rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate fixed today for delivery in six months","es":""},"correct":false,"feedback":{"fr":"","en":"A forward rate concerns future delivery; the spot rate is for immediate delivery (IAS 21, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"The exchange rate for immediate delivery of the currency","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The average of the rates observed during the past week","es":""},"correct":false,"feedback":{"fr":"","en":"An average is not a spot rate; it is an approximation used for other purposes (lessons 4 and 9) (IAS 21, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"The rate at which the last transaction of the previous year was recorded","es":""},"correct":false,"feedback":{"fr":"","en":"A historical rate is not the day's spot rate; it corresponds to a past date (IAS 21, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000010","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.CLOSING_RATE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"CLOSING_RATE_NATURE","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IAS21.000002","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-rates"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"The closing rate is a spot rate observed at the end of the reporting period.","es":""},"explanation":{"fr":"","en":"Rule to remember: the closing rate is the spot rate at the end of the reporting period (IAS 21, para. 8).","es":""},"common_error":{"fr":"","en":"Seeing the closing rate as a category of rate distinct from the spot rate.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000011","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.EXCHANGE_DIFFERENCE"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"EXCHANGE_DIFFERENCE_CALC","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS21.000002","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"numeric-difference"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"A receivable of GBP 8,000 is translated into euros on two dates. Rates (euros per pound): 1.12 then 1.18. Calculate the two amounts and the exchange difference.","es":""},"explanation":{"fr":"","en":"8,000 × 1.12 = €8,960; 8,000 × 1.18 = €9,440; difference = €480. Rule to remember: an exchange difference is the gap between two translations of the same number of units at different rates (IAS 21, para. 8).","es":""},"common_error":{"fr":"","en":"Calculating the difference on the rate gap alone without multiplying by the foreign currency amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount in pounds","es":""},"value":"8000","unit":"GBP"},{"label":{"fr":"","en":"First rate","es":""},"value":"1.12","unit":"EUR/GBP"},{"label":{"fr":"","en":"Second rate","es":""},"value":"1.18","unit":"EUR/GBP"}],"steps":[{"id":"a1","label":{"fr":"","en":"Amount at the first rate","es":""},"answer":8960,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Amount at the second rate","es":""},"answer":9440,"tolerance":0,"unit":"EUR"},{"id":"d","label":{"fr":"","en":"Exchange difference","es":""},"answer":480,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Amount at the first rate","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount in pounds","es":""},"value":8000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"First rate","es":""},"value":1.12,"unit":"EUR/GBP"}],"result":8960,"unit":"EUR"},{"step":"a2","meaning":{"fr":"","en":"Amount at the second rate","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount in pounds","es":""},"value":8000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Second rate","es":""},"value":1.18,"unit":"EUR/GBP"}],"result":9440,"unit":"EUR"}],"rationale":{"fr":"","en":"an exchange difference is the gap between two translations of the same number of units at different rates (IAS 21, para. 8).","es":""},"references":["REF.IAS21.8"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000012","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.MONETARY_ITEMS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"MONETARY_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS21.000002","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-monetary"},"references":["IAS 21 §16"],"exercise":{"prompt":{"fr":"","en":"Classify each Melvane item as monetary or non-monetary.","es":""},"explanation":{"fr":"","en":"Rule to remember: a monetary item gives a right to, or an obligation to deliver, a fixed or determinable number of currency units (IAS 21, para. 16).","es":""},"common_error":{"fr":"","en":"Classifying the advance or the inventory as monetary because they are denominated in foreign currency.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Monetary item","es":""}},{"id":"c2","text":{"fr":"","en":"Non-monetary item","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Trade receivable denominated in pounds sterling","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Lease liability payable in cash","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Provision to be settled in cash","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"Inventory of goods bought in foreign currency","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Industrial building bought in foreign currency","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"Advance paid for a future delivery of goods","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000013","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.MONETARY_ITEMS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"MONETARY_MULTI","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS21.000002","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-monetary"},"references":["IAS 21 §16"],"exercise":{"prompt":{"fr":"","en":"Which items are monetary? (Several answers.)","es":""},"explanation":{"fr":"","en":"Rule to remember: cash receivables and payables are monetary, including dividends payable and employee benefits payable in cash (IAS 21, para. 16).","es":""},"common_error":{"fr":"","en":"Retaining only assets among the monetary items.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cash dividends recognised as a liability","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A machine acquired abroad","es":""},"correct":false,"feedback":{"fr":"","en":"A machine gives no right to a fixed number of currency units: it is non-monetary (IAS 21, para. 16).","es":""}},{"id":"C","text":{"fr":"","en":"Employee benefits payable in cash","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A stock of goods held abroad","es":""},"correct":false,"feedback":{"fr":"","en":"Inventory is non-monetary: it gives no right to a fixed amount of money (IAS 21, para. 16).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000014","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.EXCHANGE_DIFFERENCE"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"GENERIC","tested_point":"DIFFERENCE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS21.000002","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-difference"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: exchange difference: same number of units, two different rates (IAS 21, para. 8); closing rate: spot rate at the end of the period (IAS 21, para. 8).","es":""},"common_error":{"fr":"","en":"Believing a difference arises merely from holding a foreign currency amount.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"An exchange difference arises as soon as an entity holds a foreign currency amount, even if the rate does not change.","es":""},"erroneous":true,"correction":{"fr":"","en":"Two different rates applied to the same number of currency units are needed (IAS 21, para. 8).","es":""}},{"id":"e2","text":{"fr":"","en":"The closing rate is the average of the rates observed over the last twelve months.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is the spot rate at the end of the reporting period (IAS 21, para. 8).","es":""}},{"id":"e3","text":{"fr":"","en":"The same number of foreign currency units translated at two different rates gives two amounts in functional currency whose difference is an exchange difference.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000015","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.MONETARY_ITEMS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"VARIABLE_INSTRUMENTS_MONETARY","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS21.000002","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-monetary"},"references":["IAS 21 §16"],"exercise":{"prompt":{"fr":"","en":"A contract requires delivering a variable number of shares whose fair value will equal 500,000 currency units. How should this item be classified?","es":""},"explanation":{"fr":"","en":"Rule to remember: a contract settled in a variable number of instruments whose fair value equals a fixed number of currency units is a monetary item (IAS 21, para. 16).","es":""},"common_error":{"fr":"","en":"Tying monetary nature to cash settlement alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Non-monetary, because settlement is in shares and not in cash, whatever the value delivered","es":""},"correct":false,"feedback":{"fr":"","en":"The settlement method is not enough: a contract settled in a variable number of instruments whose fair value equals a fixed amount is monetary (IAS 21, para. 16).","es":""}},{"id":"B","text":{"fr":"","en":"Non-monetary, because it is an equity instrument","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of what is delivered is not the test; it is the equivalence to a fixed or determinable number of currency units (IAS 21, para. 16).","es":""}},{"id":"C","text":{"fr":"","en":"Neither, as long as the number of shares is not settled","es":""},"correct":false,"feedback":{"fr":"","en":"The number of shares may vary: what counts is the value to be delivered, here fixed in currency units (IAS 21, para. 16).","es":""}},{"id":"D","text":{"fr":"","en":"Monetary, because the fair value delivered equals a fixed number of currency units","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000016","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.SECONDARY_INDICATORS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SECONDARY_FACTOR","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-secondary"},"references":["IAS 21 §10","IAS 21 §9"],"exercise":{"prompt":{"fr":"","en":"Which of these is a secondary supporting factor rather than a primary indicator of the functional currency?","es":""},"explanation":{"fr":"","en":"Rule to remember: financing and the currency in which operating receipts are kept are supporting factors examined after the primary indicators (IAS 21, para. 10).","es":""},"common_error":{"fr":"","en":"Placing financing among the primary indicators.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The currency in which financing funds are generated","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The currency that mainly influences selling prices","es":""},"correct":false,"feedback":{"fr":"","en":"Influence on selling prices is a primary indicator, examined first (IAS 21, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"The currency that mainly influences labour costs","es":""},"correct":false,"feedback":{"fr":"","en":"Costs are among the primary indicators (IAS 21, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"The currency of the country whose competition determines prices","es":""},"correct":false,"feedback":{"fr":"","en":"Competitive forces and regulation determining prices are primary indicators (IAS 21, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000017","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ONE_INDICATOR_NOT_ENOUGH","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-determination"},"references":["IAS 21 §17"],"exercise":{"prompt":{"fr":"","en":"If an entity's costs are mostly in dollars, its functional currency is necessarily the dollar.","es":""},"explanation":{"fr":"","en":"Rule to remember: the functional currency is determined by following all the indicators, without stopping at a single one (IAS 21, para. 17).","es":""},"common_error":{"fr":"","en":"Concluding from a single indicator.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000018","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.PRIMARY_INDICATORS","IAS21.FUNCTIONAL.SECONDARY_INDICATORS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"PRIMARY_VS_SECONDARY","difficulty":"INTERMEDIATE","estimated_time_s":85,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-secondary"},"references":["IAS 21 §9","IAS 21 §10"],"exercise":{"prompt":{"fr":"","en":"Classify each Zelmar fact as a primary indicator or a secondary factor of the functional currency.","es":""},"explanation":{"fr":"","en":"Rule to remember: selling prices, competition and regulation, costs: primary indicators (IAS 21, para. 9); financing and retention of receipts: supporting factors (IAS 21, para. 10).","es":""},"common_error":{"fr":"","en":"Mixing primary indicators and secondary factors.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Primary indicator","es":""}},{"id":"c2","text":{"fr":"","en":"Secondary factor","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Selling prices are set by the world market in dollars","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Wages and materials are mostly paid in Mexican pesos","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"The country's regulation determines prices, and its currency is the peso","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"The entity issues its bonds in dollars","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Operating receipts are kept in dollars in local accounts","es":""},"category":"c2"},{"id":"i6","text":{"fr":"","en":"Funds raised from shareholders are paid in pesos","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000019","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.PRIMARY_INDICATORS","IAS21.FUNCTIONAL.SECONDARY_INDICATORS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"INDICATOR_QUESTIONS","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-secondary"},"references":["IAS 21 §9","IAS 21 §10"],"exercise":{"prompt":{"fr":"","en":"Match each indicator with the question it raises.","es":""},"explanation":{"fr":"","en":"Rule to remember: the first two are primary indicators (IAS 21, para. 9); the last two are supporting factors (IAS 21, para. 10).","es":""},"common_error":{"fr":"","en":"Linking financing to selling prices.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Selling prices","es":""}},{"id":"l2","text":{"fr":"","en":"Costs","es":""}},{"id":"l3","text":{"fr":"","en":"Financing","es":""}},{"id":"l4","text":{"fr":"","en":"Operating receipts","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"In which currency are debt and equity funds raised?","es":""}},{"id":"r4","text":{"fr":"","en":"In which currency are they generally kept?","es":""}},{"id":"r1","text":{"fr":"","en":"Which currency mainly influences the prices of goods and services?","es":""}},{"id":"r2","text":{"fr":"","en":"Which currency mainly influences labour and materials?","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000020","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.DETERMINATION"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"DETERMINATION_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-determination"},"references":["IAS 21 §17","IAS 21 §9","IAS 21 §10"],"exercise":{"prompt":{"fr":"","en":"Put the steps for determining the functional currency in a logical order.","es":""},"explanation":{"fr":"","en":"Approach: this order is a proposed working approach; it follows the sequence primary then secondary (IAS 21, paras. 17, 9 and 10). Rule to remember: the indicators are read together, without stopping at a single one.","es":""},"common_error":{"fr":"","en":"Concluding before examining all the indicators.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Gather the entity's facts: selling prices, costs, financing, receipts","es":""}},{"id":"s2","text":{"fr":"","en":"Examine the primary indicators first","es":""}},{"id":"s3","text":{"fr":"","en":"Add the secondary factors if the primary indicators do not settle the matter","es":""}},{"id":"s4","text":{"fr":"","en":"Conclude with reasons and keep the evidence","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000021","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.DETERMINATION"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"GENERIC","tested_point":"DETERMINATION_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-determination"},"references":["IAS 21 §17","IAS 21 §9"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: the functional currency is determined on all the indicators, starting with the primary ones (IAS 21, paras. 17 and 9).","es":""},"common_error":{"fr":"","en":"Making the functional currency a management option.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"The functional currency is determined by considering all the indicators, without stopping at the first one met.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"Management may freely choose the functional currency according to its management preference, provided it documents it.","es":""},"erroneous":true,"correction":{"fr":"","en":"The functional currency is observed from facts and indicators; it is not chosen by preference (IAS 21, para. 17).","es":""}},{"id":"e3","text":{"fr":"","en":"In case of disagreement, the secondary factors prevail over the primary indicators.","es":""},"erroneous":true,"correction":{"fr":"","en":"Secondary factors give support and are examined after the primary indicators (IAS 21, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000022","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.JUDGEMENT_MIXED"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"MIXED_INDICATORS","difficulty":"EXPERT","estimated_time_s":100,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-mixed"},"references":["IAS 21 §12"],"exercise":{"prompt":{"fr":"","en":"An entity sells in dollars but pays most of its costs and finances itself in euros. How should its functional currency be settled?","es":""},"explanation":{"fr":"","en":"Rule to remember: with mixed indicators, management exercises judgement to choose the currency that most faithfully represents the economic effects; priority to the primary indicators (IAS 21, para. 12). Professional judgement: it documents its conclusion.","es":""},"common_error":{"fr":"","en":"Replacing judgement with a count of indicators or an automatic rule.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By choosing the euro, because two of the three criteria point to it","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not ask to count indicators; it asks for a judgement on the economic effects (IAS 21, para. 12).","es":""}},{"id":"B","text":{"fr":"","en":"By a reasoned judgement based first on the primary indicators","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"By choosing the dollar, because the selling price always overrides costs","es":""},"correct":false,"feedback":{"fr":"","en":"No indicator overrides automatically; the judgement covers the whole, with priority to the primary indicators (IAS 21, para. 12).","es":""}},{"id":"D","text":{"fr":"","en":"By choosing the currency most used in the year's invoices","es":""},"correct":false,"feedback":{"fr":"","en":"Invoice frequency is not the test: one looks for the currency that best reflects the economic effects (IAS 21, para. 12).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000023","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.FOREIGN_OPERATION_INDICATORS"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"FOREIGN_OP_FACTORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-foreign-op"},"references":["IAS 21 §11"],"exercise":{"prompt":{"fr":"","en":"Which facts point to the reporting entity's functional currency rather than to that of its subsidiary's country? (Several answers.)","es":""},"explanation":{"fr":"","en":"Rule to remember: extension, a high proportion of transactions with the entity and cash flows directly remitted to it point to the reporting entity's currency; financing autonomy points to the subsidiary's currency (IAS 21, para. 11).","es":""},"common_error":{"fr":"","en":"Reading financing autonomy as a factor of dependence.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The subsidiary carries out its activities as an extension of the reporting entity","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A high proportion of the subsidiary's transactions is with the reporting entity","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The subsidiary's cash flows suffice to service its debt without funds from the reporting entity","es":""},"correct":false,"feedback":{"fr":"","en":"This financing autonomy points rather to the subsidiary's own currency (IAS 21, para. 11).","es":""}},{"id":"D","text":{"fr":"","en":"The subsidiary's cash flows directly affect those of the reporting entity and are available for remittance to it","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000024","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.JUDGEMENT_MIXED","IAS21.FUNCTIONAL.DETERMINATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"GENERIC","tested_point":"FUNCTIONAL_FILE_MINI","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS21.000003","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"judgment"},"references":["IAS 21 §12","IAS 21 §17","IAS 21 §9"],"exercise":{"prompt":{"fr":"","en":"Functional currency file of Harlane","es":""},"explanation":{"fr":"","en":"Professional judgement: the functional currency file sets out the facts, weighs the primary then secondary indicators and reasons the conclusion (IAS 21, paras. 12 and 17).","es":""},"common_error":{"fr":"","en":"Concluding with a count of indicators without reasoning.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Harlane SA, a fictitious company, makes components sold on a world market where prices are quoted in dollars. Its main costs (wages, materials) are paid in Swiss francs; it borrows in Swiss francs and keeps its receipts in dollars. The accountant must conclude on the functional currency and document it.","es":""},"parts":[{"prompt":{"fr":"","en":"Which elements of the file are primary indicators?","es":""},"explanation":{"fr":"","en":"Rule to remember: selling prices and costs are primary indicators (IAS 21, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The Swiss franc borrowing and receipts kept in dollars","es":""},"correct":false,"feedback":{"fr":"","en":"Financing and receipts are secondary factors (IAS 21, para. 10).","es":""}},{"id":"B","text":{"fr":"","en":"Only the costs paid in Swiss francs","es":""},"correct":false,"feedback":{"fr":"","en":"Selling prices are also among the primary indicators (IAS 21, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"Only the selling prices quoted in dollars","es":""},"correct":false,"feedback":{"fr":"","en":"Costs are also a primary indicator, which here points to another currency (IAS 21, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Selling prices in dollars and costs in Swiss francs","es":""},"correct":true}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"The primary indicators diverge. What should the conclusion rest on?","es":""},"explanation":{"fr":"","en":"Professional judgement: the conclusion rests on a reasoned judgement, with priority to the primary indicators (IAS 21, para. 12).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On a reasoned judgement about the economic effects","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On the currency in which receipts are kept, as the secondary factor prevails","es":""},"correct":false,"feedback":{"fr":"","en":"Secondary factors do not decide against the primary indicators (IAS 21, para. 12).","es":""}},{"id":"C","text":{"fr":"","en":"On the percentage of dollar sales compared with a threshold in the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no numeric threshold; it is a judgement (IAS 21, para. 12).","es":""}},{"id":"D","text":{"fr":"","en":"On the currency of the group's parent, whatever the facts","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's functional currency is deduced from its own facts (IAS 21, para. 17).","es":""}}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The file must keep the facts examined and the reasons for the choice, since no numeric threshold decides in the accountant's place.","es":""},"explanation":{"fr":"","en":"Rule to remember: the determination is a judgement on all the indicators (IAS 21, para. 17); Professional judgement: the file keeps the evidence and the reasoning.","es":""},"common_error":{"fr":"","en":"Looking for a numeric threshold to determine the functional currency: it is a judgement on all indicators, to be documented.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000025","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.SPOT_RATE","IAS21.TRANSACTIONS.INITIAL_RECOGNITION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"INITIAL_RATE_CHOICE","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-initial"},"references":["IAS 21 §21"],"exercise":{"prompt":{"fr":"","en":"On 14 March, an entity (functional currency: the euro) receives goods bought for 30,000 pounds. Which rate is used for initial recognition?","es":""},"explanation":{"fr":"","en":"Rule to remember: the transaction is recorded at the spot rate on the transaction date (IAS 21, para. 21).","es":""},"common_error":{"fr":"","en":"Using the closing rate at initial recognition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The closing rate of the current year","es":""},"correct":false,"feedback":{"fr":"","en":"The closing rate is used to retranslate monetary items at reporting dates, not at initial recognition (IAS 21, para. 21).","es":""}},{"id":"B","text":{"fr":"","en":"The spot rate on the contractual settlement day","es":""},"correct":false,"feedback":{"fr":"","en":"Settlement comes later; initial recognition uses the rate on the transaction date (IAS 21, para. 21).","es":""}},{"id":"C","text":{"fr":"","en":"The spot rate on 14 March","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The average rate of the previous year","es":""},"correct":false,"feedback":{"fr":"","en":"An average rate of another period is not the rate on the transaction date (IAS 21, para. 21).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000026","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.INITIAL_RECOGNITION","IAS21.TRANSACTIONS.SPOT_RATE"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"INITIAL_RECOGNITION_CALC","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"numeric-initial"},"references":["IAS 21 §21"],"exercise":{"prompt":{"fr":"","en":"On 14 March, an entity receives goods invoiced at GBP 30,000. The spot rate of the day is 1.12 euros per pound. Calculate the amount to record.","es":""},"explanation":{"fr":"","en":"30,000 × 1.12 = €33,600. Rule to remember: the transaction is recorded at the spot rate on the transaction date (IAS 21, para. 21).","es":""},"common_error":{"fr":"","en":"Dividing by the rate instead of multiplying.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Invoice amount","es":""},"value":"30000","unit":"GBP"},{"label":{"fr":"","en":"Spot rate on 14 March","es":""},"value":"1.12","unit":"EUR/GBP"}],"steps":[{"id":"amt","label":{"fr":"","en":"Amount to record","es":""},"answer":33600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"amt","meaning":{"fr":"","en":"Amount to record","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Invoice amount","es":""},"value":30000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Spot rate on 14 March","es":""},"value":1.12,"unit":"EUR/GBP"}],"result":33600,"unit":"EUR"}],"rationale":{"fr":"","en":"the transaction is recorded at the spot rate on the transaction date (IAS 21, para. 21).","es":""},"references":["REF.IAS21.21"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000027","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.INITIAL_RECOGNITION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"INITIAL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"entry-initial"},"references":["IAS 21 §21"],"exercise":{"prompt":{"fr":"","en":"On 5 June, Perlane (functional currency: the euro) receives inventory invoiced at CAD 45,000; spot rate of the day: 0.68 euro per Canadian dollar. Record the initial recognition entry.","es":""},"explanation":{"fr":"","en":"45,000 × 0.68 = €30,600: debit inventories, credit trade payables; no exchange difference at initial recognition. Rule to remember: the transaction is recorded at the spot rate on the transaction date (IAS 21, para. 21).","es":""},"common_error":{"fr":"","en":"Recording an exchange gain or loss in the initial entry.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"inv","text":{"fr":"","en":"Inventories","es":""}},{"id":"pay","text":{"fr":"","en":"Trade payables","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"fx","text":{"fr":"","en":"Exchange loss (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"inv","side":"DEBIT","amount":30600,"given":["account","side"]},{"id":"l2","account":"pay","side":"CREDIT","amount":30600,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000028","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.TRANSACTION_DATE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DATE_NOT_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-date"},"references":["IAS 21 §22"],"exercise":{"prompt":{"fr":"","en":"The transaction date is always the order date, even if the recognition conditions are met only later.","es":""},"explanation":{"fr":"","en":"Rule to remember: the transaction date is the date on which the recognition conditions are first met (IAS 21, para. 22).","es":""},"common_error":{"fr":"","en":"Setting the transaction date at the order.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000029","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.AVERAGE_RATE_APPROX"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"AVERAGE_INAPPROPRIATE","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-average"},"references":["IAS 21 §22"],"exercise":{"prompt":{"fr":"","en":"The rates of a currency fluctuated strongly throughout the month. An entity considers using the month's average rate for its many sales. What should be concluded?","es":""},"explanation":{"fr":"","en":"Rule to remember: the average rate is an inappropriate approximation if rates fluctuate significantly (IAS 21, para. 22).","es":""},"common_error":{"fr":"","en":"Using the average for convenience without judging fluctuation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average remains allowed, because it simplifies the accounting work","es":""},"correct":false,"feedback":{"fr":"","en":"The simplification is allowed only if rates do not fluctuate significantly (IAS 21, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"The average is inappropriate, because rates fluctuated significantly","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The average is allowed if calculated over twelve months","es":""},"correct":false,"feedback":{"fr":"","en":"No duration makes the average appropriate when fluctuation is strong (IAS 21, para. 22).","es":""}},{"id":"D","text":{"fr":"","en":"The average is allowed provided it is rounded to two decimals","es":""},"correct":false,"feedback":{"fr":"","en":"Rounding has no effect on whether the average is appropriate (IAS 21, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000030","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.AVERAGE_RATE_APPROX"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"AVERAGE_RATE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"numeric-initial"},"references":["IAS 21 §22"],"exercise":{"prompt":{"fr":"","en":"During a month when rates moved little, an entity (functional currency: the euro) invoices CHF 84,000 of sales. It uses the month's average rate, 1.04 euro per Swiss franc. Calculate the revenue to record.","es":""},"explanation":{"fr":"","en":"84,000 × 1.04 = €87,360. Case convention: the average rate is case data, judged to approximate transaction rates for lack of significant fluctuation. Rule to remember: an average rate may approximate the rate on the transaction date if rates do not fluctuate significantly (IAS 21, para. 22).","es":""},"common_error":{"fr":"","en":"Applying the closing rate instead of the average rate provided.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Sales of the month","es":""},"value":"84000","unit":"CHF"},{"label":{"fr":"","en":"Average rate of the month (case data)","es":""},"value":"1.04","unit":"EUR/CHF"}],"steps":[{"id":"rev","label":{"fr":"","en":"Revenue in euros","es":""},"answer":87360,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"rev","meaning":{"fr":"","en":"Revenue in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sales of the month","es":""},"value":84000,"unit":"CHF"},{"symbol":"b","meaning":{"fr":"","en":"Average rate of the month (case data)","es":""},"value":1.04,"unit":"EUR/CHF"}],"result":87360,"unit":"EUR"}],"rationale":{"fr":"","en":"an average rate may approximate the rate on the transaction date if rates do not fluctuate significantly (IAS 21, para. 22).","es":""},"references":["REF.IAS21.22"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000031","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.TRANSACTION_DATE","IAS21.IFRIC22.MULTIPLE_PAYMENTS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"IFRIC22_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-multiple"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: the transaction date is that of initial recognition of the non-monetary advance asset or liability; each payment has its own date (IFRIC 22).","es":""},"common_error":{"fr":"","en":"Applying a single rate to staggered payments.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"For an advance in a foreign currency, the transaction date is that of initial recognition of {{b1}}; if several payments are made in advance, {{b2}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"the advance, a non-monetary asset arising from the payment","es":""}},{"id":"b","text":{"fr":"","en":"the trade payable to be settled on delivery","es":""}},{"id":"c","text":{"fr":"","en":"the item acquired on delivery, whatever the advance date","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"the first payment's rate applies to all of the payments","es":""}},{"id":"b","text":{"fr":"","en":"each payment has its own transaction date","es":""}},{"id":"c","text":{"fr":"","en":"the average rate of the payments applies to all","es":""}}],"answer":"b"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000032","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.TRANSACTION_DATE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"SOFTWARE","tested_point":"ADVANCE_RECEIVED_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"numeric-ifric22"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"On 8 September, Oradane (functional currency: the euro) receives GBP 12,000 in advance for a future delivery; spot rate of the day: 1.14 euros per pound. Record the receipt entry.","es":""},"explanation":{"fr":"","en":"12,000 × 1.14 = €13,680: debit cash, credit contract liability; the liability, non-monetary, is not retranslated later. Rule to remember: the transaction date is that of initial recognition of the non-monetary liability arising from the receipt in advance (IFRIC 22).","es":""},"common_error":{"fr":"","en":"Recognising revenue or an exchange gain immediately on receipt.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"cl","text":{"fr":"","en":"Contract liability (deferred income)","es":""}},{"id":"rev","text":{"fr":"","en":"Revenue","es":""}},{"id":"fx","text":{"fr":"","en":"Exchange gain (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":13680,"given":["account","side"]},{"id":"l2","account":"cl","side":"CREDIT","amount":13680,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000033","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.SCOPE"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"GENERIC","tested_point":"IFRIC22_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-scope"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"IFRIC 22 applies to a foreign currency purchase paid in full on delivery, with no prior advance.","es":""},"explanation":{"fr":"","en":"Rule to remember: IFRIC 22 concerns foreign currency consideration with a prepayment asset or deferred income liability recognised before the related item (IFRIC 22).","es":""},"common_error":{"fr":"","en":"Applying IFRIC 22 with no advance recognised.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000034","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.MULTIPLE_PAYMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRIAL","tested_point":"MULTIPLE_ADVANCES_CALC","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-multiple"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"An entity (functional currency: the euro) pays two advances for a machine invoiced at GBP 15,000: GBP 9,000 on 3 May (rate 1.10) and GBP 6,000 on 9 June (rate 1.15). Calculate the machine's total cost translated at the dates of the advances.","es":""},"explanation":{"fr":"","en":"9,000 × 1.10 = €9,900; 6,000 × 1.15 = €6,900; total = €16,800. Rule to remember: each payment has its own transaction date (IFRIC 22).","es":""},"common_error":{"fr":"","en":"Translating the 15,000 pounds at a single rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"First advance","es":""},"value":"9000","unit":"GBP"},{"label":{"fr":"","en":"Rate on 3 May","es":""},"value":"1.10","unit":"EUR/GBP"},{"label":{"fr":"","en":"Second advance","es":""},"value":"6000","unit":"GBP"},{"label":{"fr":"","en":"Rate on 9 June","es":""},"value":"1.15","unit":"EUR/GBP"}],"steps":[{"id":"p1","label":{"fr":"","en":"First advance in euros","es":""},"answer":9900,"tolerance":0,"unit":"EUR"},{"id":"p2","label":{"fr":"","en":"Second advance in euros","es":""},"answer":6900,"tolerance":0,"unit":"EUR"},{"id":"tot","label":{"fr":"","en":"Total cost of the machine","es":""},"answer":16800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"p1","meaning":{"fr":"","en":"First advance in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"First advance","es":""},"value":9000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Rate on 3 May","es":""},"value":1.1,"unit":"EUR/GBP"}],"result":9900,"unit":"EUR"},{"step":"p2","meaning":{"fr":"","en":"Second advance in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Second advance","es":""},"value":6000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Rate on 9 June","es":""},"value":1.15,"unit":"EUR/GBP"}],"result":6900,"unit":"EUR"}],"rationale":{"fr":"","en":"each payment has its own transaction date (IFRIC 22).","es":""},"references":["REF.IFRIC22.CONSENSUS"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000035","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.EFFECTIVE_DATE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"IFRIC22_EFFECTIVE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS21.000004","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-effective"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"An entity's year begins on 1 July 2017 and it does not early-apply IFRIC 22. Must it apply it to that year?","es":""},"explanation":{"fr":"","en":"Rule to remember: IFRIC 22 applies to periods beginning on or after 1 January 2018, early application being permitted (IFRIC 22).","es":""},"common_error":{"fr":"","en":"Ignoring the application date or the option of early application.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: it applies to periods beginning on or after 1 January 2018, with early application permitted","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes: it applies from publication, including to current years","es":""},"correct":false,"feedback":{"fr":"","en":"There is an application date, 1 January 2018, with early application permitted (IFRIC 22).","es":""}},{"id":"C","text":{"fr":"","en":"Yes: it applies to periods beginning on or after 1 January 2017, with no possibility of early application","es":""},"correct":false,"feedback":{"fr":"","en":"The application date is 1 January 2018, not 2017 (IFRIC 22).","es":""}},{"id":"D","text":{"fr":"","en":"No: the interpretation cannot be applied early","es":""},"correct":false,"feedback":{"fr":"","en":"Early application is permitted (IFRIC 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000036","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.MONETARY_CLOSING"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHICH_ITEM_RETRANSLATED","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-monetary"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, an entity has a foreign currency trade payable and inventory bought in foreign currency. Which of the two items is retranslated?","es":""},"explanation":{"fr":"","en":"Rule to remember: only monetary items in foreign currency are retranslated at the closing rate (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Retranslating every item denominated in foreign currency.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The inventory, because it is exposed to currency risk","es":""},"correct":false,"feedback":{"fr":"","en":"The inventory, non-monetary at cost, stays at the rate of its transaction date (IAS 21, para. 23).","es":""}},{"id":"B","text":{"fr":"","en":"Both, as soon as they are denominated in a foreign currency","es":""},"correct":false,"feedback":{"fr":"","en":"The currency of denomination is not enough: only monetary items are retranslated at the closing rate (IAS 21, para. 23).","es":""}},{"id":"C","text":{"fr":"","en":"The payable, because it is a monetary item in foreign currency","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Neither, the original rate being kept until settlement","es":""},"correct":false,"feedback":{"fr":"","en":"An unsettled monetary balance is retranslated at each reporting date, without waiting for settlement (IAS 21, para. 23).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000037","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.NONMONETARY_HISTORICAL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"HISTORICAL_RATE_KEPT","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-historical"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Land bought in foreign currency and measured at historical cost keeps the rate of its transaction date at subsequent reporting dates.","es":""},"explanation":{"fr":"","en":"Rule to remember: a non-monetary item at historical cost is translated at the rate on the transaction date (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Retranslating a cost asset like a monetary balance.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000038","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.MONETARY_CLOSING","IAS21.SUBSEQUENT.NONMONETARY_HISTORICAL","IAS21.SUBSEQUENT.NONMONETARY_FAIR_VALUE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"WHICH_RATE_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"how-steps"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Classify each foreign currency item of Brelane according to the rate to use at the reporting date.","es":""},"explanation":{"fr":"","en":"Approach: first classify the item (monetary, non-monetary at cost, non-monetary at fair value), then apply the matching rate. Rule to remember: monetary: closing rate; cost: transaction rate; fair value: rate on the measurement date (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Applying the closing rate to all foreign currency items.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Closing rate","es":""}},{"id":"c2","text":{"fr":"","en":"Rate on the transaction date","es":""}},{"id":"c3","text":{"fr":"","en":"Rate on the date the fair value was determined","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Loan received from a foreign bank","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Trade receivable denominated in foreign currency","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Equipment acquired in foreign currency and measured at cost","es":""},"category":"c2"},{"id":"i4","text":{"fr":"","en":"Inventory acquired in foreign currency and measured at cost","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Investment property measured at fair value determined on 20 November","es":""},"category":"c3"},{"id":"i6","text":{"fr":"","en":"Land revalued at fair value determined on 2 December","es":""},"category":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000039","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.MONETARY_CLOSING"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"RECEIVABLE_RETRANSLATION","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"numeric-closing"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"An entity (functional currency: the euro) recorded a receivable of GBP 60,000 at 1.10 euros per pound. At the reporting date, the rate is 1.15. Calculate the value of the receivable at the reporting date and the exchange difference.","es":""},"explanation":{"fr":"","en":"60,000 × 1.10 = €66,000; 60,000 × 1.15 = €69,000; gain = €3,000. Rule to remember: at the reporting date, a monetary item in foreign currency is translated at the closing rate (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Leaving the receivable at its original rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Receivable in pounds","es":""},"value":"60000","unit":"GBP"},{"label":{"fr":"","en":"Original rate","es":""},"value":"1.10","unit":"EUR/GBP"},{"label":{"fr":"","en":"Closing rate","es":""},"value":"1.15","unit":"EUR/GBP"}],"steps":[{"id":"init","label":{"fr":"","en":"Value at origin","es":""},"answer":66000,"tolerance":0,"unit":"EUR"},{"id":"close","label":{"fr":"","en":"Value at the reporting date","es":""},"answer":69000,"tolerance":0,"unit":"EUR"},{"id":"diff","label":{"fr":"","en":"Exchange difference (gain)","es":""},"answer":3000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"init","meaning":{"fr":"","en":"Value at origin","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Receivable in pounds","es":""},"value":60000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Original rate","es":""},"value":1.1,"unit":"EUR/GBP"}],"result":66000,"unit":"EUR"},{"step":"close","meaning":{"fr":"","en":"Value at the reporting date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Receivable in pounds","es":""},"value":60000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Closing rate","es":""},"value":1.15,"unit":"EUR/GBP"}],"result":69000,"unit":"EUR"}],"rationale":{"fr":"","en":"at the reporting date, a monetary item in foreign currency is translated at the closing rate (IAS 21, para. 23).","es":""},"references":["REF.IAS21.23"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000040","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.MONETARY_CLOSING","IAS21.SUBSEQUENT.NONMONETARY_HISTORICAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRIAL","tested_point":"LOAN_AND_EQUIPMENT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"numeric-closing"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"An entity (functional currency: the euro) has a loan of CHF 135,000 recorded at 1.02 and equipment of CHF 160,000 bought at the same rate, measured at cost. At the reporting date, the Swiss franc is worth 1.06 euro. Calculate the loan at the reporting date, the exchange loss and the equipment at the reporting date.","es":""},"explanation":{"fr":"","en":"Loan: 135,000 × 1.06 = €143,100, against €137,700 originally: loss €5,400. Equipment: 160,000 × 1.02 = €163,200, unchanged. Rule to remember: monetary: closing rate; non-monetary at cost: transaction rate (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Also retranslating the equipment at the closing rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Loan in Swiss francs","es":""},"value":"135000","unit":"CHF"},{"label":{"fr":"","en":"Equipment at cost in Swiss francs","es":""},"value":"160000","unit":"CHF"},{"label":{"fr":"","en":"Original rate","es":""},"value":"1.02","unit":"EUR/CHF"},{"label":{"fr":"","en":"Closing rate","es":""},"value":"1.06","unit":"EUR/CHF"}],"steps":[{"id":"loan","label":{"fr":"","en":"Loan at the reporting date","es":""},"answer":143100,"tolerance":0,"unit":"EUR"},{"id":"loss","label":{"fr":"","en":"Exchange loss","es":""},"answer":5400,"tolerance":0,"unit":"EUR"},{"id":"eq","label":{"fr":"","en":"Equipment at the reporting date","es":""},"answer":163200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"loan","meaning":{"fr":"","en":"Loan at the reporting date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loan in Swiss francs","es":""},"value":135000,"unit":"CHF"},{"symbol":"b","meaning":{"fr":"","en":"Closing rate","es":""},"value":1.06,"unit":"EUR/CHF"}],"result":143100,"unit":"EUR"},{"step":"eq","meaning":{"fr":"","en":"Equipment at the reporting date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Equipment at cost in Swiss francs","es":""},"value":160000,"unit":"CHF"},{"symbol":"b","meaning":{"fr":"","en":"Original rate","es":""},"value":1.02,"unit":"EUR/CHF"}],"result":163200,"unit":"EUR"}],"rationale":{"fr":"","en":"monetary: closing rate; non-monetary at cost: transaction rate (IAS 21, para. 23).","es":""},"references":["REF.IAS21.23"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000041","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.MONETARY_CLOSING","IAS21.SUBSEQUENT.NONMONETARY_HISTORICAL","IAS21.SUBSEQUENT.NONMONETARY_FAIR_VALUE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"THREE_RATES_FILL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"how-steps"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: three families of items, three rates: closing, transaction, fair value measurement (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Swapping the rates between the three families.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"A monetary item in foreign currency is translated at the {{b1}}; a non-monetary item at cost, at the rate of {{b2}}; a non-monetary item at fair value, at the rate of {{b3}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"closing rate","es":""}},{"id":"b","text":{"fr":"","en":"average rate for the year","es":""}},{"id":"c","text":{"fr":"","en":"agreed forward rate","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"the reporting date of the year","es":""}},{"id":"b","text":{"fr":"","en":"the expected settlement date","es":""}},{"id":"c","text":{"fr":"","en":"the transaction date","es":""}}],"answer":"c"},{"id":"b3","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"the date the fair value was determined","es":""}},{"id":"b","text":{"fr":"","en":"the date on which the entity acquired the item","es":""}},{"id":"c","text":{"fr":"","en":"the opening date of the year","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000042","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.MONETARY_CLOSING","IAS21.SUBSEQUENT.NONMONETARY_FAIR_VALUE","IAS21.SUBSEQUENT.NONMONETARY_HISTORICAL"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"GENERIC","tested_point":"RATE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"how-steps"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: monetary: closing; non-monetary at cost: transaction date; non-monetary at fair value: measurement date (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Automatically applying the closing rate to every non-monetary item.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"A non-monetary item measured at fair value is always translated at the closing rate, even if the fair value was determined on another day.","es":""},"erroneous":true,"correction":{"fr":"","en":"The rate is that of the date the fair value was determined (IAS 21, para. 23).","es":""}},{"id":"e2","text":{"fr":"","en":"At each reporting date, a monetary item in foreign currency is translated at the closing rate.","es":""},"erroneous":false},{"id":"e3","text":{"fr":"","en":"A non-monetary item at historical cost is retranslated at the closing rate to reflect currency risk.","es":""},"erroneous":true,"correction":{"fr":"","en":"It keeps the rate on the transaction date; currency risk does not justify retranslating it (IAS 21, para. 23).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000043","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.CARRYING_AMOUNT_COMPARISON"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"LOWER_OF_FX_CALC","difficulty":"ADVANCED","estimated_time_s":140,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"numeric-lower"},"references":["IAS 21 §24","IAS 21 §25"],"exercise":{"prompt":{"fr":"","en":"An entity (functional currency: the euro) bought inventory for CAD 30,000 at 0.70. At the reporting date, net realisable value is CAD 29,000 and the closing rate is 0.66 euro per Canadian dollar. Calculate the cost, the net realisable value in euros and the write-down.","es":""},"explanation":{"fr":"","en":"Cost: 30,000 × 0.70 = €21,000; net realisable value: 29,000 × 0.66 = €19,140; the lower is €19,140; write-down = €1,860. Approach: each amount is translated at its own rate before the comparison (IAS 21, paras. 24 and 25). Rule to remember: the lower-of measurement is made in the functional currency. Effect: the fall of the currency increases the write-down.","es":""},"common_error":{"fr":"","en":"Comparing 30,000 and 29,000 in foreign currency (gap 1,000) without translating.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost in Canadian dollars","es":""},"value":"30000","unit":"CAD"},{"label":{"fr":"","en":"Net realisable value in Canadian dollars","es":""},"value":"29000","unit":"CAD"},{"label":{"fr":"","en":"Rate at purchase","es":""},"value":"0.70","unit":"EUR/CAD"},{"label":{"fr":"","en":"Closing rate","es":""},"value":"0.66","unit":"EUR/CAD"}],"steps":[{"id":"cost","label":{"fr":"","en":"Cost in euros","es":""},"answer":21000,"tolerance":0,"unit":"EUR"},{"id":"nrv","label":{"fr":"","en":"Net realisable value in euros","es":""},"answer":19140,"tolerance":0,"unit":"EUR"},{"id":"wd","label":{"fr":"","en":"Inventory write-down","es":""},"answer":1860,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"cost","meaning":{"fr":"","en":"Cost in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost in Canadian dollars","es":""},"value":30000,"unit":"CAD"},{"symbol":"b","meaning":{"fr":"","en":"Rate at purchase","es":""},"value":0.7,"unit":"EUR/CAD"}],"result":21000,"unit":"EUR"},{"step":"nrv","meaning":{"fr":"","en":"Net realisable value in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net realisable value in Canadian dollars","es":""},"value":29000,"unit":"CAD"},{"symbol":"b","meaning":{"fr":"","en":"Closing rate","es":""},"value":0.66,"unit":"EUR/CAD"}],"result":19140,"unit":"EUR"}],"rationale":{"fr":"","en":"the lower-of measurement is made in the functional currency. Effect: the fall of the currency increases the write-down.","es":""},"references":["REF.IAS21.24","REF.IAS21.25"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000044","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.CARRYING_AMOUNT_COMPARISON"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"LOWER_OF_METHOD","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS21.000005","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-lower"},"references":["IAS 21 §24","IAS 21 §25"],"exercise":{"prompt":{"fr":"","en":"To measure at the lower of cost and net realisable value an inventory bought in foreign currency, how should the two amounts be compared?","es":""},"explanation":{"fr":"","en":"Rule to remember: the carrying amount is determined under the relevant standard then expressed in functional currency (IAS 21, paras. 24 and 25). Approach: each amount is translated at its own rate before the comparison.","es":""},"common_error":{"fr":"","en":"Comparing the amounts in foreign currency then translating the result.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In foreign currency, without translation, then translating the result at the year's average rate","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is determined under the relevant standard then expressed in functional currency; the comparison is made in that currency (IAS 21, paras. 24 and 25).","es":""}},{"id":"B","text":{"fr":"","en":"In functional currency, both amounts at the closing rate","es":""},"correct":false,"feedback":{"fr":"","en":"Cost follows the rate of its transaction date; translating it at the closing rate would wrongly retranslate it (IAS 21, paras. 24 and 25).","es":""}},{"id":"C","text":{"fr":"","en":"In functional currency, both amounts at the transaction-date rate","es":""},"correct":false,"feedback":{"fr":"","en":"Net realisable value reflects the rate of the date it is determined, not that of the purchase (IAS 21, paras. 24 and 25).","es":""}},{"id":"D","text":{"fr":"","en":"In functional currency, each amount at its own rate","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000045","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.PROFIT_OR_LOSS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SETTLEMENT_GAIN_WHERE","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-pl"},"references":["IAS 21 §28"],"exercise":{"prompt":{"fr":"","en":"A receivable in pounds is collected at a rate higher than the one at which it was recorded. Where does the entity record the difference?","es":""},"explanation":{"fr":"","en":"Rule to remember: exchange differences on monetary items, at settlement as at retranslation, are recognised in profit or loss of the period in which they arise (IAS 21, para. 28).","es":""},"common_error":{"fr":"","en":"Carrying the difference into an equity line.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In other comprehensive income, until the entity is disposed of","es":""},"correct":false,"feedback":{"fr":"","en":"That presentation concerns the translation of a foreign operation, not the settlement of an ordinary receivable (IAS 21).","es":""}},{"id":"B","text":{"fr":"","en":"As a reduction of the cost of the goods originally sold","es":""},"correct":false,"feedback":{"fr":"","en":"The difference does not change the cost of goods; it is an exchange gain of the period (IAS 21, para. 28).","es":""}},{"id":"C","text":{"fr":"","en":"In profit or loss of the period, as an exchange gain","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"In equity, as an adjustment to prior results","es":""},"correct":false,"feedback":{"fr":"","en":"Differences on monetary items are recognised in the period in which they arise, not as an adjustment of past periods (IAS 21, para. 28).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000046","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SETTLEMENT_TO_OCI_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-pl"},"references":["IAS 21 §28"],"exercise":{"prompt":{"fr":"","en":"The exchange difference arising on settlement of a foreign currency trade payable is recognised in other comprehensive income.","es":""},"explanation":{"fr":"","en":"Rule to remember: the settlement difference on a monetary item is recognised in profit or loss of the period (IAS 21, para. 28).","es":""},"common_error":{"fr":"","en":"Confusing a settlement difference with the translation difference of a foreign operation.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000047","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.PROFIT_OR_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"GENERIC","tested_point":"CLOSING_RETRANSLATION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"entry-settlement"},"references":["IAS 21 §28"],"exercise":{"prompt":{"fr":"","en":"A receivable of GBP 20,000 was recorded at 1.10 euros per pound. At the reporting date, the rate is 1.13. Record the entry retranslating the receivable.","es":""},"explanation":{"fr":"","en":"20,000 × (1.13 − 1.10) = €600: debit receivables, credit exchange gain in profit or loss. Rule to remember: the difference on a retranslated monetary item is recognised in profit or loss of the period (IAS 21, para. 28).","es":""},"common_error":{"fr":"","en":"Carrying the gain to the translation reserve.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"rec","text":{"fr":"","en":"Trade receivables","es":""}},{"id":"gain","text":{"fr":"","en":"Exchange gain (profit or loss)","es":""}},{"id":"res","text":{"fr":"","en":"Translation reserve (other comprehensive income)","es":""}},{"id":"sales","text":{"fr":"","en":"Sales","es":""}}],"lines":[{"id":"l1","account":"rec","side":"DEBIT","amount":600,"given":["account","side"]},{"id":"l2","account":"gain","side":"CREDIT","amount":600,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000048","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.PROFIT_OR_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"SETTLEMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"entry-settlement"},"references":["IAS 21 §28"],"exercise":{"prompt":{"fr":"","en":"A debt of CHF 15,000, recorded at 1.02 euro per Swiss franc, is settled at 1.05 (no earlier retranslation). Record the settlement entry.","es":""},"explanation":{"fr":"","en":"Debt cleared: 15,000 × 1.02 = €15,300; payment: 15,000 × 1.05 = €15,750; loss = €450. Rule to remember: the settlement difference on a monetary item is recognised in profit or loss (IAS 21, para. 28).","es":""},"common_error":{"fr":"","en":"Adding the loss to the cost of the inventory bought.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"pay","text":{"fr":"","en":"Trade payables","es":""}},{"id":"loss","text":{"fr":"","en":"Exchange loss (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"inv","text":{"fr":"","en":"Inventories","es":""}}],"lines":[{"id":"l1","account":"pay","side":"DEBIT","amount":15300,"given":["account","side"]},{"id":"l2","account":"loss","side":"DEBIT","amount":450,"given":["account","side"]},{"id":"l3","account":"cash","side":"CREDIT","amount":15750,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000049","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"CLOSING_AND_SETTLEMENT_SPLIT","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"numeric-settlement"},"references":["IAS 21 §28"],"exercise":{"prompt":{"fr":"","en":"A receivable of USD 18,000 is recorded at 0.88 euro per dollar. At the reporting date, the rate is 0.91; the receivable is collected the following year at 0.90. Calculate the difference recognised at the reporting date, the settlement difference and the total difference.","es":""},"explanation":{"fr":"","en":"Initial: 18,000 × 0.88 = €15,840; reporting date: 18,000 × 0.91 = €16,380 (gain €540); collection: 18,000 × 0.90 = €16,200 (change -€180); total €360. Rule to remember: the differences at the reporting date and at settlement are recognised in profit or loss, each in its own period (IAS 21, para. 28).","es":""},"common_error":{"fr":"","en":"Calculating the settlement difference against the initial rate instead of the closing rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Receivable in dollars","es":""},"value":"18000","unit":"USD"},{"label":{"fr":"","en":"Initial rate","es":""},"value":"0.88","unit":"EUR/USD"},{"label":{"fr":"","en":"Closing rate","es":""},"value":"0.91","unit":"EUR/USD"},{"label":{"fr":"","en":"Collection rate","es":""},"value":"0.90","unit":"EUR/USD"}],"steps":[{"id":"close","label":{"fr":"","en":"Difference at the reporting date (gain)","es":""},"answer":540,"tolerance":0,"unit":"EUR"},{"id":"settle","label":{"fr":"","en":"Settlement difference (negative = loss)","es":""},"answer":-180,"tolerance":0,"unit":"EUR"},{"id":"total","label":{"fr":"","en":"Total difference","es":""},"answer":360,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000050","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_NO_DIFFERENCE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"COST_ASSET_NO_DIFFERENCE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-nodiff"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Equipment bought in Swiss francs is measured at cost. The Swiss franc appreciates after the purchase. What is the effect on this equipment?","es":""},"explanation":{"fr":"","en":"Rule to remember: a non-monetary item at historical cost is not retranslated, so it generates no exchange difference (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Believing a change in rate alters a cost asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No exchange difference: it stays at the rate on the transaction date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An exchange gain in profit or loss, equal to the rise of the Swiss franc","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is not retranslated: no exchange gain appears (IAS 21, para. 23).","es":""}},{"id":"C","text":{"fr":"","en":"A revaluation of the equipment in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"Equipment at cost is not revalued by a mere change in a rate (IAS 21, para. 23).","es":""}},{"id":"D","text":{"fr":"","en":"A mandatory write-down of the equipment at the closing rate","es":""},"correct":false,"feedback":{"fr":"","en":"A change in rate does not trigger an impairment; the cost stays translated at the transaction date (IAS 21, para. 23).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000051","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_OCI"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"REVALUATION_FX_SPLIT","difficulty":"INTERMEDIATE","estimated_time_s":160,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"numeric-oci"},"references":["IAS 21 §30"],"exercise":{"prompt":{"fr":"","en":"A building bought for GBP 200,000 at 1.10 euro per pound is revalued to GBP 230,000, fair value determined at 1.15. Calculate the fair value in euros, the total revaluation, the exchange component and the other component.","es":""},"explanation":{"fr":"","en":"230,000 × 1.15 = €264,500; cost 200,000 × 1.10 = €220,000; revaluation = €44,500. Exchange component: 200,000 × (1.15 − 1.10) = €10,000; other component: (230,000 − 200,000) × 1.15 = €34,500. Rule to remember: the exchange component follows the treatment of the revaluation, here other comprehensive income (IAS 21, para. 30).","es":""},"common_error":{"fr":"","en":"Placing the exchange component in profit or loss and the rest in other comprehensive income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost in pounds","es":""},"value":"200000","unit":"GBP"},{"label":{"fr":"","en":"Fair value in pounds","es":""},"value":"230000","unit":"GBP"},{"label":{"fr":"","en":"Purchase rate","es":""},"value":"1.10","unit":"EUR/GBP"},{"label":{"fr":"","en":"Rate on the fair value date","es":""},"value":"1.15","unit":"EUR/GBP"}],"steps":[{"id":"fv","label":{"fr":"","en":"Fair value in euros","es":""},"answer":264500,"tolerance":0,"unit":"EUR"},{"id":"tot","label":{"fr":"","en":"Total revaluation","es":""},"answer":44500,"tolerance":0,"unit":"EUR"},{"id":"fx","label":{"fr":"","en":"Exchange component","es":""},"answer":10000,"tolerance":0,"unit":"EUR"},{"id":"oth","label":{"fr":"","en":"Other component (rise in pounds)","es":""},"answer":34500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"fv","meaning":{"fr":"","en":"Fair value in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value in pounds","es":""},"value":230000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Rate on the fair value date","es":""},"value":1.15,"unit":"EUR/GBP"}],"result":264500,"unit":"EUR"},{"step":"fx","meaning":{"fr":"","en":"Exchange component","es":""},"expression":"a * (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost in pounds","es":""},"value":200000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Rate on the fair value date","es":""},"value":1.15,"unit":"EUR/GBP"},{"symbol":"c","meaning":{"fr":"","en":"Purchase rate","es":""},"value":1.1,"unit":"EUR/GBP"}],"result":10000,"unit":"EUR"},{"step":"oth","meaning":{"fr":"","en":"Other component (rise in pounds)","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value in pounds","es":""},"value":230000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Cost in pounds","es":""},"value":200000,"unit":"GBP"},{"symbol":"c","meaning":{"fr":"","en":"Rate on the fair value date","es":""},"value":1.15,"unit":"EUR/GBP"}],"result":34500,"unit":"EUR"}],"rationale":{"fr":"","en":"the exchange component follows the treatment of the revaluation, here other comprehensive income (IAS 21, para. 30).","es":""},"references":["REF.IAS21.30"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000052","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_OCI"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"REVALUATION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"entry-oci"},"references":["IAS 21 §30"],"exercise":{"prompt":{"fr":"","en":"A building is revalued by €44,500 in total (exchange component included); the revaluation is recognised in other comprehensive income. Record the entry.","es":""},"explanation":{"fr":"","en":"Debit building 44,500; credit revaluation surplus 44,500, with no split to profit or loss. Rule to remember: the exchange component follows the revaluation in other comprehensive income (IAS 21, para. 30).","es":""},"common_error":{"fr":"","en":"Splitting the entry between profit or loss and other comprehensive income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"bld","text":{"fr":"","en":"Building","es":""}},{"id":"sur","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}},{"id":"gain","text":{"fr":"","en":"Exchange gain (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"bld","side":"DEBIT","amount":44500,"given":["account","side"]},{"id":"l2","account":"sur","side":"CREDIT","amount":44500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000053","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.PROFIT_OR_LOSS","IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_OCI","IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_NO_DIFFERENCE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"WHERE_DIFFERENCE_GOES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS21.000006","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"understand"},"references":["IAS 21 §23","IAS 21 §30","IAS 21 §28"],"exercise":{"prompt":{"fr":"","en":"Classify each situation by the treatment of the exchange difference.","es":""},"explanation":{"fr":"","en":"Rule to remember: monetary: difference in profit or loss (IAS 21, para. 28); exchange part of a revaluation in other comprehensive income: same treatment (IAS 21, para. 30); non-monetary at cost: no difference (IAS 21, para. 23).","es":""},"common_error":{"fr":"","en":"Placing in profit or loss the difference of a revaluation in other comprehensive income.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Difference in profit or loss","es":""}},{"id":"c2","text":{"fr":"","en":"Difference in other comprehensive income","es":""}},{"id":"c3","text":{"fr":"","en":"No difference","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Retranslation at the reporting date of a foreign currency trade payable","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Collection of a foreign currency receivable at a rate different from the recording rate","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Exchange part of a building revaluation recognised in other comprehensive income","es":""},"category":"c2"},{"id":"i4","text":{"fr":"","en":"Equipment bought in foreign currency and kept at historical cost","es":""},"category":"c3"},{"id":"i5","text":{"fr":"","en":"Inventory bought in foreign currency and measured at cost","es":""},"category":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000054","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.NET_INVESTMENT.DEFINITION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NET_INVESTMENT_LOAN","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS21.000007","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000007","section_id":"rule-def"},"references":["IAS 21 §15"],"exercise":{"prompt":{"fr":"","en":"A parent lent foreign currency funds to its Polish subsidiary; its board decided to set no repayment date and settlement is not likely in the foreseeable future. How should this loan be characterised?","es":""},"explanation":{"fr":"","en":"Rule to remember: a monetary item with no planned or likely settlement in the foreseeable future forms part of the net investment (IAS 21, para. 15).","es":""},"common_error":{"fr":"","en":"Excluding every intragroup loan on principle.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an ordinary trade balance, since every intragroup loan is one","es":""},"correct":false,"feedback":{"fr":"","en":"A loan with no planned or likely settlement may be treated as an extension of the investment (IAS 21, para. 15).","es":""}},{"id":"B","text":{"fr":"","en":"As a monetary item of the net investment in the subsidiary","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a non-monetary item, since it is not repaid","es":""},"correct":false,"feedback":{"fr":"","en":"The net investment is a monetary item whose settlement is neither planned nor likely (IAS 21, para. 15).","es":""}},{"id":"D","text":{"fr":"","en":"As a hedging instrument of the subsidiary, within IFRS 9","es":""},"correct":false,"feedback":{"fr":"","en":"The qualification depends on the absence of a planned or likely settlement, not on a hedging relationship (IAS 21, para. 15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000055","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.NET_INVESTMENT.EXCHANGE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DISPOSAL_RECLASS_NET_INV","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000007","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000007","section_id":"rule-diff"},"references":["IAS 21 §32"],"exercise":{"prompt":{"fr":"","en":"On disposal of the net investment, the exchange difference accumulated in other comprehensive income is reclassified to profit or loss.","es":""},"explanation":{"fr":"","en":"Rule to remember: the difference on an item of the net investment is reclassified to profit or loss on disposal of the net investment (IAS 21, para. 32).","es":""},"common_error":{"fr":"","en":"Leaving the difference permanently in equity.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000056","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.NET_INVESTMENT.EXCHANGE_DIFFERENCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"NET_INVESTMENT_LOAN_CALC","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS21.000007","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000007","section_id":"numeric-ni"},"references":["IAS 21 §32"],"exercise":{"prompt":{"fr":"","en":"A parent (functional currency: the euro) lent GBP 250,000 to its UK subsidiary; the loan forms part of the net investment. Rates: 1.10 at the loan date, 1.14 at the reporting date. Calculate the receivable at the loan date, at the reporting date and the difference, then say where it goes in the consolidated statements.","es":""},"explanation":{"fr":"","en":"250,000 × 1.10 = €275,000; 250,000 × 1.14 = €285,000; difference = €10,000, in profit or loss in the parent's separate statements and in other comprehensive income on consolidation. Rule to remember: the difference on an item of the net investment goes to other comprehensive income on consolidation (IAS 21, para. 32).","es":""},"common_error":{"fr":"","en":"Leaving the difference in consolidated profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Loan in pounds","es":""},"value":"250000","unit":"GBP"},{"label":{"fr":"","en":"Rate at the loan date","es":""},"value":"1.10","unit":"EUR/GBP"},{"label":{"fr":"","en":"Closing rate","es":""},"value":"1.14","unit":"EUR/GBP"}],"steps":[{"id":"c0","label":{"fr":"","en":"Receivable at the loan date","es":""},"answer":275000,"tolerance":0,"unit":"EUR"},{"id":"c1","label":{"fr":"","en":"Receivable at the reporting date","es":""},"answer":285000,"tolerance":0,"unit":"EUR"},{"id":"d","label":{"fr":"","en":"Exchange difference (carried to other comprehensive income on consolidation)","es":""},"answer":10000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"c0","meaning":{"fr":"","en":"Receivable at the loan date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loan in pounds","es":""},"value":250000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Rate at the loan date","es":""},"value":1.1,"unit":"EUR/GBP"}],"result":275000,"unit":"EUR"},{"step":"c1","meaning":{"fr":"","en":"Receivable at the reporting date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loan in pounds","es":""},"value":250000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Closing rate","es":""},"value":1.14,"unit":"EUR/GBP"}],"result":285000,"unit":"EUR"}],"rationale":{"fr":"","en":"the difference on an item of the net investment goes to other comprehensive income on consolidation (IAS 21, para. 32).","es":""},"references":["REF.IAS21.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000057","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.NET_INVESTMENT.EXCHANGE_DIFFERENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"GENERIC","tested_point":"CONSOLIDATION_ADJUSTMENT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000007","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000007","section_id":"entry-ni"},"references":["IAS 21 §32"],"exercise":{"prompt":{"fr":"","en":"In the parent's separate accounts, an exchange gain of €10,000 on a loan forming part of the net investment is in profit or loss. Record the consolidation adjustment.","es":""},"explanation":{"fr":"","en":"Debit exchange gain in profit or loss 10,000; credit translation reserve 10,000. Consolidated profit or loss no longer contains the gain. Rule to remember: on consolidation, the difference on an item of the net investment is in other comprehensive income (IAS 21, para. 32).","es":""},"common_error":{"fr":"","en":"Crediting the gain twice, in profit or loss and in the reserve.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"gain","text":{"fr":"","en":"Exchange gain (profit or loss)","es":""}},{"id":"res","text":{"fr":"","en":"Translation reserve (other comprehensive income)","es":""}},{"id":"loan","text":{"fr":"","en":"Loan to the subsidiary","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"gain","side":"DEBIT","amount":10000,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":10000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000058","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.NET_INVESTMENT.EXCHANGE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"NET_INVESTMENT_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS21.000007","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000007","section_id":"rule-diff"},"references":["IAS 21 §32","IAS 21 §15"],"exercise":{"prompt":{"fr":"","en":"Match each situation with its treatment.","es":""},"explanation":{"fr":"","en":"Rule to remember: profit or loss in the separate statements, other comprehensive income on consolidation, reclassification on disposal (IAS 21, para. 32); a planned settlement excludes the item (IAS 21, para. 15).","es":""},"common_error":{"fr":"","en":"Linking the consolidated difference to profit or loss.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Difference on an item of the net investment, parent's separate statements","es":""}},{"id":"l2","text":{"fr":"","en":"The same difference, consolidated statements","es":""}},{"id":"l3","text":{"fr":"","en":"Disposal of the net investment","es":""}},{"id":"l4","text":{"fr":"","en":"Loan whose settlement is planned","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"Accumulated difference reclassified to profit or loss","es":""}},{"id":"r4","text":{"fr":"","en":"Does not form part of the net investment","es":""}},{"id":"r1","text":{"fr":"","en":"Recognised in profit or loss","es":""}},{"id":"r2","text":{"fr":"","en":"Recognised in other comprehensive income","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000059","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.NET_INVESTMENT.SEPARATE_VS_CONSOLIDATED"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CURRENCY_OF_DENOMINATION","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS21.000007","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000007","section_id":"rule-currency"},"references":["IAS 21 §33"],"exercise":{"prompt":{"fr":"","en":"A parent's loan to its subsidiary, forming part of the net investment, is denominated in the subsidiary's functional currency. Where does the exchange difference arise?","es":""},"explanation":{"fr":"","en":"Rule to remember: an item denominated in the foreign operation's functional currency generates the difference in the reporting entity's separate statements (IAS 21, para. 33).","es":""},"common_error":{"fr":"","en":"Assuming the difference always arises at the borrower.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the subsidiary's separate statements, which must retranslate its debt","es":""},"correct":false,"feedback":{"fr":"","en":"The debt is in the subsidiary's functional currency: it generates no difference there (IAS 21, para. 33).","es":""}},{"id":"B","text":{"fr":"","en":"In both entities, by symmetry","es":""},"correct":false,"feedback":{"fr":"","en":"The difference arises in both entities only if the item is denominated in a third currency (IAS 21, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"Nowhere, because the item forms part of the net investment","es":""},"correct":false,"feedback":{"fr":"","en":"Belonging to the net investment does not remove the difference; it determines its treatment by type of statements (IAS 21, para. 33).","es":""}},{"id":"D","text":{"fr":"","en":"In the separate statements of the parent, the reporting entity","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000060","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.NET_INVESTMENT.SEPARATE_VS_CONSOLIDATED"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"THIRD_CURRENCY","difficulty":"EXPERT","estimated_time_s":90,"lesson_id":"LS.IAS21.000007","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000007","section_id":"rule-currency"},"references":["IAS 21 §33"],"exercise":{"prompt":{"fr":"","en":"A parent (functional currency: the euro) lends its US subsidiary (functional currency: the dollar) funds denominated in Swiss francs as part of the net investment. Where do the exchange differences arise?","es":""},"explanation":{"fr":"","en":"Rule to remember: an item denominated in a third currency generates a difference in both entities (IAS 21, para. 33).","es":""},"common_error":{"fr":"","en":"Believing the difference arises on one side only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In both entities, because the Swiss franc is a third currency for each of them","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"At the parent, because it holds the receivable","es":""},"correct":false,"feedback":{"fr":"","en":"The subsidiary has a debt in Swiss francs, a foreign currency for it: it has a difference too (IAS 21, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"At the subsidiary, because it is the one that must repay","es":""},"correct":false,"feedback":{"fr":"","en":"The parent holds a receivable in Swiss francs, a foreign currency for it: it has a difference too (IAS 21, para. 33).","es":""}},{"id":"D","text":{"fr":"","en":"Nowhere, because both functional currencies differ from the Swiss franc","es":""},"correct":false,"feedback":{"fr":"","en":"It is precisely because the Swiss franc differs from both functional currencies that the difference arises on both sides (IAS 21, para. 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000061","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.CONDITIONS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"VALID_REASON_FOR_CHANGE","difficulty":"INTERMEDIATE","estimated_time_s":55,"lesson_id":"LS.IAS21.000008","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"rule-conditions"},"references":["IAS 21 §36"],"exercise":{"prompt":{"fr":"","en":"Which of these reasons may justify a change of functional currency?","es":""},"explanation":{"fr":"","en":"Rule to remember: the functional currency changes only if the underlying transactions, events and conditions change (IAS 21, para. 36).","es":""},"common_error":{"fr":"","en":"Changing functional currency for convenience or result reasons.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Management wishes to simplify the group's consolidation","es":""},"correct":false,"feedback":{"fr":"","en":"Management convenience does not change the underlying conditions (IAS 21, para. 36).","es":""}},{"id":"B","text":{"fr":"","en":"Selling prices, costs and financing durably shift to another currency","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The current functional currency depreciated sharply over the course of the year","es":""},"correct":false,"feedback":{"fr":"","en":"A change in a rate is not a change in the underlying economic conditions (IAS 21, para. 36).","es":""}},{"id":"D","text":{"fr":"","en":"The year's exchange differences were unfavourable","es":""},"correct":false,"feedback":{"fr":"","en":"The exchange result does not alter the underlying transactions, events and conditions (IAS 21, para. 36).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000062","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.PROSPECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PROSPECTIVE_TRUE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS21.000008","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"rule-prospective"},"references":["IAS 21 §35"],"exercise":{"prompt":{"fr":"","en":"The change of functional currency applies from its date, without restating earlier periods.","es":""},"explanation":{"fr":"","en":"Rule to remember: the procedures of the new functional currency apply from the date of the change (IAS 21, para. 35).","es":""},"common_error":{"fr":"","en":"Restating the past in the new currency.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000063","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.TRANSLATION_AT_DATE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"NEW_COST_FILL","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS21.000008","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"rule-translation"},"references":["IAS 21 §37"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: at the change, items are translated at the rate on the date of the change; non-monetary items take a new historical cost there (IAS 21, para. 37).","es":""},"common_error":{"fr":"","en":"Keeping the old original rate for non-monetary items.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"On a change of functional currency, non-monetary items are translated at the rate of {{b1}} and the resulting amount becomes {{b2}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"their acquisition date","es":""}},{"id":"b","text":{"fr":"","en":"the date of the change","es":""}},{"id":"c","text":{"fr":"","en":"the last reporting date","es":""}}],"answer":"b"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"a translation difference in equity","es":""}},{"id":"b","text":{"fr":"","en":"income of the period of the change","es":""}},{"id":"c","text":{"fr":"","en":"their new historical cost","es":""}}],"answer":"c"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000064","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.TRANSLATION_AT_DATE"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"EARLIER_DIFFERENCES_STAY","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS21.000008","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"rule-translation"},"references":["IAS 21 §37"],"exercise":{"prompt":{"fr":"","en":"At the time of a change of functional currency, what happens to the translation differences accumulated before the change?","es":""},"explanation":{"fr":"","en":"Rule to remember: translation differences accumulated before the change stay in equity until disposal (IAS 21, para. 37).","es":""},"common_error":{"fr":"","en":"Recycling past differences to profit or loss merely because of the change.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are reclassified to profit or loss at the date of the change","es":""},"correct":false,"feedback":{"fr":"","en":"The change is not a disposal: reclassification to profit or loss is not triggered (IAS 21, para. 37).","es":""}},{"id":"B","text":{"fr":"","en":"They are added to the new historical cost of non-monetary assets","es":""},"correct":false,"feedback":{"fr":"","en":"The new cost comes from the translation at the rate of the change, not from carrying over differences (IAS 21, para. 37).","es":""}},{"id":"C","text":{"fr":"","en":"They are cancelled against retained earnings","es":""},"correct":false,"feedback":{"fr":"","en":"No cancellation is provided for: the accumulated amount remains in equity (IAS 21, para. 37).","es":""}},{"id":"D","text":{"fr":"","en":"They stay in equity until disposal","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000065","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.TRANSLATION_AT_DATE"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRIAL","tested_point":"NEW_HISTORICAL_COST_CALC","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS21.000008","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"numeric-change"},"references":["IAS 21 §37"],"exercise":{"prompt":{"fr":"","en":"An entity moves from the euro to the dollar as its functional currency. Equipment has a historical cost of €150,000. On the date of the change, one euro is worth 1.08 dollars. Calculate the new historical cost in dollars.","es":""},"explanation":{"fr":"","en":"150,000 × 1.08 = USD 162,000. Rule to remember: at the change, non-monetary items are translated at the rate on the date of the change and that amount becomes their new historical cost (IAS 21, para. 37).","es":""},"common_error":{"fr":"","en":"Using the equipment's acquisition rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Historical cost in euros","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Rate on the date of the change","es":""},"value":"1.08","unit":"USD/EUR"}],"steps":[{"id":"new","label":{"fr":"","en":"New historical cost","es":""},"answer":162000,"tolerance":0,"unit":"USD"}],"formula":{"lines":[{"step":"new","meaning":{"fr":"","en":"New historical cost","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Historical cost in euros","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate on the date of the change","es":""},"value":1.08,"unit":"USD/EUR"}],"result":162000,"unit":"USD"}],"rationale":{"fr":"","en":"at the change, non-monetary items are translated at the rate on the date of the change and that amount becomes their new historical cost (IAS 21, para. 37).","es":""},"references":["REF.IAS21.37"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000066","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.CONDITIONS","IAS21.CHANGE_FUNCTIONAL.PROSPECTIVE"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"CHANGE_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS21.000008","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"example"},"references":["IAS 21 §35"],"exercise":{"prompt":{"fr":"","en":"Put in a logical order the approach to follow when an entity considers changing its functional currency.","es":""},"explanation":{"fr":"","en":"Approach: this order is a proposed working approach, not an order imposed by the standard; it rests on the principle of a change only if conditions change and an application from its date (IAS 21, para. 35). Rule to remember: no change by mere preference.","es":""},"common_error":{"fr":"","en":"Translating balances before establishing the reality of the change.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Establish that the underlying conditions have durably changed","es":""}},{"id":"s2","text":{"fr":"","en":"Identify the date of the change and gather the evidence","es":""}},{"id":"s3","text":{"fr":"","en":"Translate the balances into the new currency at the rate on that date","es":""}},{"id":"s4","text":{"fr":"","en":"Apply the procedures of the new currency from the date of the change","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000067","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.PRESENTATION.CHOICE_OF_CURRENCY"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PRESENTATION_CURRENCY_FREE","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS21.000009","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-choice"},"references":["IAS 21 §39","IAS 21 §38"],"exercise":{"prompt":{"fr":"","en":"An entity whose functional currency is the dollar wants to publish its financial statements in euros. Is this possible?","es":""},"explanation":{"fr":"","en":"Rule to remember: the presentation currency is a choice; if it differs from the functional currency, results and financial position are translated (IAS 21, paras. 38 and 39).","es":""},"common_error":{"fr":"","en":"Imposing the functional currency as the presentation currency.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: the presentation currency must be the functional currency","es":""},"correct":false,"feedback":{"fr":"","en":"The presentation currency is a choice of the entity; if it differs from the functional currency, one translates (IAS 21, paras. 38 and 39).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, but it must first obtain the market authority's agreement to that choice","es":""},"correct":false,"feedback":{"fr":"","en":"The standard leaves the entity free to choose its presentation currency, without the prior agreement of the market authority (IAS 21, para. 38).","es":""}},{"id":"C","text":{"fr":"","en":"Yes: the choice is free, but the statements must then be translated","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, and the dollar amounts stay identical once presented in euros","es":""},"correct":false,"feedback":{"fr":"","en":"The dollar amounts must be translated into euros under the method of the standard (IAS 21, para. 39).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000068","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.ASSETS_LIABILITIES_CLOSING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"COMPARATIVES_OWN_CLOSING_RATE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS21.000009","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"In the translated statements, the assets and liabilities of the comparative period are translated at the closing rate of that comparative period.","es":""},"explanation":{"fr":"","en":"Rule to remember: each statement of financial position presented, comparative included, is translated at the closing rate of its date (IAS 21, para. 39).","es":""},"common_error":{"fr":"","en":"Applying the current closing rate to comparatives.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000069","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.ASSETS_LIABILITIES_CLOSING"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"BALANCE_SHEET_CALC","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS21.000009","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"numeric-translation"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"A subsidiary's functional currency is the Swiss franc; its group presents in euros. At the reporting date, its assets are CHF 900,000 and its liabilities CHF 350,000; the closing rate is 1.03 euro per Swiss franc. Calculate the assets, liabilities and net assets in euros.","es":""},"explanation":{"fr":"","en":"900,000 × 1.03 = €927,000; 350,000 × 1.03 = €360,500; net assets = €566,500. Rule to remember: assets and liabilities are translated at the closing rate of the statement (IAS 21, para. 39).","es":""},"common_error":{"fr":"","en":"Translating some of the items at the average rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Assets in Swiss francs","es":""},"value":"900000","unit":"CHF"},{"label":{"fr":"","en":"Liabilities in Swiss francs","es":""},"value":"350000","unit":"CHF"},{"label":{"fr":"","en":"Closing rate","es":""},"value":"1.03","unit":"EUR/CHF"}],"steps":[{"id":"a","label":{"fr":"","en":"Assets in euros","es":""},"answer":927000,"tolerance":0,"unit":"EUR"},{"id":"l","label":{"fr":"","en":"Liabilities in euros","es":""},"answer":360500,"tolerance":0,"unit":"EUR"},{"id":"n","label":{"fr":"","en":"Net assets in euros","es":""},"answer":566500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Assets in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Assets in Swiss francs","es":""},"value":900000,"unit":"CHF"},{"symbol":"b","meaning":{"fr":"","en":"Closing rate","es":""},"value":1.03,"unit":"EUR/CHF"}],"result":927000,"unit":"EUR"},{"step":"l","meaning":{"fr":"","en":"Liabilities in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liabilities in Swiss francs","es":""},"value":350000,"unit":"CHF"},{"symbol":"b","meaning":{"fr":"","en":"Closing rate","es":""},"value":1.03,"unit":"EUR/CHF"}],"result":360500,"unit":"EUR"}],"rationale":{"fr":"","en":"assets and liabilities are translated at the closing rate of the statement (IAS 21, para. 39).","es":""},"references":["REF.IAS21.39"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000070","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.INCOME_EXPENSES_TRANSACTION_RATE","IAS21.TRANSLATION.AVERAGE_RATE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"INCOME_STATEMENT_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS21.000009","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"numeric-translation"},"references":["IAS 21 §39","IAS 21 §40"],"exercise":{"prompt":{"fr":"","en":"For the year, the Swiss subsidiary earns CHF 700,000 of income and incurs CHF 610,000 of expenses. The average rate for the year, judged to approximate the transaction rates, is 1.01 euro per Swiss franc (case data). Calculate income, expenses and profit in euros.","es":""},"explanation":{"fr":"","en":"700,000 × 1.01 = €707,000; 610,000 × 1.01 = €616,100; profit = €90,900. Case convention: the average rate is case data. Rule to remember: income and expenses are translated at transaction rates, or at an approximating rate such as an average rate (IAS 21, paras. 39 and 40).","es":""},"common_error":{"fr":"","en":"Applying the closing rate to profit.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Income in Swiss francs","es":""},"value":"700000","unit":"CHF"},{"label":{"fr":"","en":"Expenses in Swiss francs","es":""},"value":"610000","unit":"CHF"},{"label":{"fr":"","en":"Average rate (case data)","es":""},"value":"1.01","unit":"EUR/CHF"}],"steps":[{"id":"rev","label":{"fr":"","en":"Income in euros","es":""},"answer":707000,"tolerance":0,"unit":"EUR"},{"id":"exp","label":{"fr":"","en":"Expenses in euros","es":""},"answer":616100,"tolerance":0,"unit":"EUR"},{"id":"res","label":{"fr":"","en":"Profit in euros","es":""},"answer":90900,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"rev","meaning":{"fr":"","en":"Income in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Income in Swiss francs","es":""},"value":700000,"unit":"CHF"},{"symbol":"b","meaning":{"fr":"","en":"Average rate (case data)","es":""},"value":1.01,"unit":"EUR/CHF"}],"result":707000,"unit":"EUR"},{"step":"exp","meaning":{"fr":"","en":"Expenses in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expenses in Swiss francs","es":""},"value":610000,"unit":"CHF"},{"symbol":"b","meaning":{"fr":"","en":"Average rate (case data)","es":""},"value":1.01,"unit":"EUR/CHF"}],"result":616100,"unit":"EUR"}],"rationale":{"fr":"","en":"income and expenses are translated at transaction rates, or at an approximating rate such as an average rate (IAS 21, paras. 39 and 40).","es":""},"references":["REF.IAS21.39","REF.IAS21.40"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000071","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.AVERAGE_RATE"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"AVERAGE_RATE_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS21.000009","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-average"},"references":["IAS 21 §40"],"exercise":{"prompt":{"fr":"","en":"Which statements about the average rate are correct? (Several answers.)","es":""},"explanation":{"fr":"","en":"Rule to remember: the average rate is an approximation, often used for income and expenses, inappropriate if rates fluctuate significantly; no threshold is set (IAS 21, para. 40).","es":""},"common_error":{"fr":"","en":"Attributing to the standard a numeric fluctuation threshold.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is often used to translate income and expenses","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It applies to the assets and liabilities of the statement of financial position, in place of the closing rate","es":""},"correct":false,"feedback":{"fr":"","en":"The statement of financial position is translated at the closing rate of its date; the average rate concerns income and expenses (IAS 21, paras. 39 and 40).","es":""}},{"id":"C","text":{"fr":"","en":"It is inappropriate if rates fluctuate significantly","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The standard sets the maximum acceptable gap between the average rate and the transaction rates","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no threshold; the assessment is a matter of judgement (IAS 21, para. 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000072","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.ASSETS_LIABILITIES_CLOSING","IAS21.TRANSLATION.INCOME_EXPENSES_TRANSACTION_RATE"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"GENERIC","tested_point":"TRANSLATION_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":85,"lesson_id":"LS.IAS21.000009","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39","IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: assets and liabilities at the closing rate of each statement; income and expenses at transaction rates; translation differences in other comprehensive income (IAS 21, paras. 39 and 41).","es":""},"common_error":{"fr":"","en":"Translating everything at the same rate or carrying the difference to profit or loss.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"The profit of a foreign subsidiary is always translated by multiplying the foreign currency profit by the closing rate.","es":""},"erroneous":true,"correction":{"fr":"","en":"Income and expenses are translated at transaction rates, or at an approximating rate (IAS 21, paras. 39 and 40).","es":""}},{"id":"e2","text":{"fr":"","en":"The assets and liabilities of the statement of financial position are translated at the average rate of the year.","es":""},"erroneous":true,"correction":{"fr":"","en":"They are translated at the closing rate of the statement (IAS 21, para. 39).","es":""}},{"id":"e3","text":{"fr":"","en":"The resulting translation differences are recognised in profit or loss of the year.","es":""},"erroneous":true,"correction":{"fr":"","en":"They are recognised in other comprehensive income (IAS 21, paras. 39 and 41).","es":""}},{"id":"e4","text":{"fr":"","en":"The assets and liabilities of each statement presented are translated at the closing rate of that statement.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000073","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.ASSETS_LIABILITIES_CLOSING","IAS21.TRANSLATION.INCOME_EXPENSES_TRANSACTION_RATE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"THREE_FAMILIES_FILL","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS21.000009","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: income and expenses at transaction rates; assets and liabilities at the closing rate; differences in other comprehensive income (IAS 21, para. 39).","es":""},"common_error":{"fr":"","en":"Swapping the two families of rates.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"In translation into the presentation currency, income and expenses are translated at the rates {{b1}}, assets and liabilities at the {{b2}}, and translation differences go to {{b3}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"at the opening date","es":""}},{"id":"b","text":{"fr":"","en":"at the subsidiary's acquisition date","es":""}},{"id":"c","text":{"fr":"","en":"at the transaction dates","es":""}}],"answer":"c"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"closing rate of each statement","es":""}},{"id":"b","text":{"fr":"","en":"average rate of the period presented","es":""}},{"id":"c","text":{"fr":"","en":"historical rate","es":""}}],"answer":"a"},{"id":"b3","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"profit or loss of the year","es":""}},{"id":"b","text":{"fr":"","en":"other comprehensive income","es":""}},{"id":"c","text":{"fr":"","en":"deferred income at the reporting date","es":""}}],"answer":"b"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000074","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.ASSETS_LIABILITIES_CLOSING","IAS21.TRANSLATION.INCOME_EXPENSES_TRANSACTION_RATE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"WHICH_RATE_STATEMENT_LINES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS21.000009","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"Classify each line of the translated statements of the subsidiary Nortane by translation treatment.","es":""},"explanation":{"fr":"","en":"Rule to remember: assets and liabilities: closing rate of the statement; income and expenses: transaction rates or an approximating rate; differences: other comprehensive income (IAS 21, paras. 39 and 40).","es":""},"common_error":{"fr":"","en":"Translating revenue at the closing rate.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Closing rate of the statement","es":""}},{"id":"c2","text":{"fr":"","en":"Rates at the transaction dates (or approximating rate)","es":""}},{"id":"c3","text":{"fr":"","en":"Other comprehensive income","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Total assets of the statement of financial position","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"Borrowings in the statement of financial position","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"Revenue for the year","es":""},"category":"c2"},{"id":"i4","text":{"fr":"","en":"Staff costs for the year","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"Difference arising from using several rates in the translation","es":""},"category":"c3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000075","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.RESERVE_OCI"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHY_OCI","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS21.000010","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"rule-reserve"},"references":["IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"Why is the translation difference of a foreign operation recognised in other comprehensive income and not in profit or loss?","es":""},"explanation":{"fr":"","en":"Rule to remember: translation differences go to other comprehensive income because the effect on cash flows is nil or small (IAS 21, para. 41).","es":""},"common_error":{"fr":"","en":"Believing every exchange difference goes to other comprehensive income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because this difference is in practice of a negligible amount for the group","es":""},"correct":false,"feedback":{"fr":"","en":"The amount is not the test: the difference may be large, but it does not affect the operation's cash flows (IAS 21, para. 41).","es":""}},{"id":"B","text":{"fr":"","en":"Because the change in rates has little or no effect on cash flows","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because the foreign operation is held for less than a year","es":""},"correct":false,"feedback":{"fr":"","en":"The holding period plays no part in the standard's reasoning (IAS 21, para. 41).","es":""}},{"id":"D","text":{"fr":"","en":"Because the standard prohibits recognising exchange income in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"Differences on monetary items in foreign currency do go to profit or loss; translating an operation is a separate case (IAS 21, para. 41).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000076","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.RESERVE_OCI"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"RESERVE_NOT_ANNUAL_RECLASS","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000010","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"rule-reserve"},"references":["IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"The translation reserve is reclassified to profit or loss at every annual closing.","es":""},"explanation":{"fr":"","en":"Rule to remember: the differences accumulate in a separate component of equity until disposal of the foreign operation (IAS 21, para. 41).","es":""},"common_error":{"fr":"","en":"Recycling the reserve every year.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000077","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.RESERVE_OCI"],"dimension":"CALCULATION","format":"CALCULATION","context":"SERVICES","tested_point":"TRANSLATION_DIFFERENCE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":160,"lesson_id":"LS.IAS21.000010","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"numeric-reserve"},"references":["IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"A UK subsidiary has opening net assets of GBP 300,000 (previous closing rate 1.12), a profit of GBP 50,000 (average rate 1.14, case data) and closing net assets of GBP 350,000 (closing rate 1.17), with no other movement. Calculate the closing net assets in euros and the translation difference.","es":""},"explanation":{"fr":"","en":"Opening: 300,000 × 1.12 = €336,000; profit: 50,000 × 1.14 = €57,000; closing: 350,000 × 1.17 = €409,500; difference = 409500 − 336000 − 57000 = €16,500. Rule to remember: the translation difference goes to other comprehensive income and accumulates in a separate reserve (IAS 21, para. 41).","es":""},"common_error":{"fr":"","en":"Forgetting to translate profit at the average rate before computing the difference.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening net assets","es":""},"value":"300000","unit":"GBP"},{"label":{"fr":"","en":"Profit","es":""},"value":"50000","unit":"GBP"},{"label":{"fr":"","en":"Closing net assets","es":""},"value":"350000","unit":"GBP"}],"steps":[{"id":"open","label":{"fr":"","en":"Opening net assets in euros","es":""},"answer":336000,"tolerance":0,"unit":"EUR"},{"id":"close","label":{"fr":"","en":"Closing net assets in euros","es":""},"answer":409500,"tolerance":0,"unit":"EUR"},{"id":"td","label":{"fr":"","en":"Translation difference","es":""},"answer":16500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"open","meaning":{"fr":"","en":"Opening net assets in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening net assets","es":""},"value":300000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"previous closing rate 1.12","es":""},"value":1.12}],"result":336000,"unit":"EUR"},{"step":"close","meaning":{"fr":"","en":"Closing net assets in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing net assets","es":""},"value":350000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"closing rate 1.17","es":""},"value":1.17}],"result":409500,"unit":"EUR"}],"rationale":{"fr":"","en":"the translation difference goes to other comprehensive income and accumulates in a separate reserve (IAS 21, para. 41).","es":""},"references":["REF.IAS21.41"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000078","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.RESERVE_OCI"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"RESERVE_ROLL_FORWARD","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS21.000010","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"numeric-reserve"},"references":["IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"A subsidiary's translation reserve is €9,000 at the opening. The translation difference for the year is €16,500 and no reclassification takes place. Calculate the closing reserve.","es":""},"explanation":{"fr":"","en":"9,000 + 16,500 = €25,500. Rule to remember: the reserve accumulates the differences until disposal; without disposal, no reclassification (IAS 21, para. 41).","es":""},"common_error":{"fr":"","en":"Reclassifying the year's difference to profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening reserve","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Difference for the year","es":""},"value":"16500","unit":"EUR"}],"steps":[{"id":"close","label":{"fr":"","en":"Closing reserve","es":""},"answer":25500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"close","meaning":{"fr":"","en":"Closing reserve","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening reserve","es":""},"value":9000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Difference for the year","es":""},"value":16500,"unit":"EUR"}],"result":25500,"unit":"EUR"}],"rationale":{"fr":"","en":"the reserve accumulates the differences until disposal; without disposal, no reclassification (IAS 21, para. 41).","es":""},"references":["REF.IAS21.41"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000079","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.RESERVE_OCI"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"GENERIC","tested_point":"TRANSLATION_DIFFERENCE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000010","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"entry-reserve"},"references":["IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"On consolidation, the translation difference for the year of a foreign subsidiary is €16,500 (gain). Record the entry.","es":""},"explanation":{"fr":"","en":"Debit net assets of the operation 16,500; credit translation reserve 16,500, without going through profit or loss. Rule to remember: the translation difference is recognised in other comprehensive income (IAS 21, para. 41).","es":""},"common_error":{"fr":"","en":"Crediting an exchange gain to profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"na","text":{"fr":"","en":"Net assets of the foreign operation","es":""}},{"id":"res","text":{"fr":"","en":"Translation reserve (other comprehensive income)","es":""}},{"id":"gain","text":{"fr":"","en":"Exchange gain (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"na","side":"DEBIT","amount":16500,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":16500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000080","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.RESERVE_OCI"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SOURCE_OF_DIFFERENCE","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS21.000010","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"rule-reserve"},"references":["IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"Which of these elements contributes to the translation difference of a foreign operation?","es":""},"explanation":{"fr":"","en":"Rule to remember: the translation difference arises from income and expenses at transaction rates, assets and liabilities at the closing rate and opening net assets at another closing rate (IAS 21, para. 41).","es":""},"common_error":{"fr":"","en":"Looking for the origin of the difference in an accounting method.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The choice of depreciation method for the subsidiary's machines","es":""},"correct":false,"feedback":{"fr":"","en":"An accounting method of the subsidiary is not a source of translation difference (IAS 21, para. 41).","es":""}},{"id":"B","text":{"fr":"","en":"An impairment of a subsidiary asset recognised in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"An impairment belongs to its own standard and creates no translation difference, which comes from different rates (IAS 21, para. 41).","es":""}},{"id":"C","text":{"fr":"","en":"The opening net assets translated at a closing rate different from last year's","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The choice to present profit or loss before financial position","es":""},"correct":false,"feedback":{"fr":"","en":"A presentation order generates no translation difference; the difference arises from the use of different rates (IAS 21, para. 41).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000081","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.NCI_ALLOCATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"NCI_SHARE_CALC","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS21.000010","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"rule-nci"},"references":["IAS 21 §48B","IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"The translation difference for the year is €16,500 and the non-controlling interests hold 30% of the subsidiary (case data). Allocate the difference between these interests and the group, pro rata to ownership.","es":""},"explanation":{"fr":"","en":"16,500 × 30% = €4,950; group's share = 16,500 − 4950 = €11,550. Case convention: allocation pro rata to ownership is a teaching assumption. Rule to remember: the non-controlling interests' share is not reclassified to profit or loss on disposal (IAS 21, para. 48B).","es":""},"common_error":{"fr":"","en":"Allocating the whole difference to the group.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Translation difference","es":""},"value":"16500","unit":"EUR"},{"label":{"fr":"","en":"Share of non-controlling interests (case data)","es":""},"value":"30","unit":"%"}],"steps":[{"id":"nci","label":{"fr":"","en":"Share of non-controlling interests","es":""},"answer":4950,"tolerance":0,"unit":"EUR"},{"id":"grp","label":{"fr":"","en":"Group's share","es":""},"answer":11550,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"grp","meaning":{"fr":"","en":"Group's share","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Translation difference","es":""},"value":16500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of non-controlling interests","es":""},"value":4950,"unit":"EUR"}],"result":11550,"unit":"EUR"}],"rationale":{"fr":"","en":"the non-controlling interests' share is not reclassified to profit or loss on disposal (IAS 21, para. 48B).","es":""},"references":["REF.IAS21.48B"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000082","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.NCI_ALLOCATION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NCI_ON_DISPOSAL","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS21.000010","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"rule-nci"},"references":["IAS 21 §48B"],"exercise":{"prompt":{"fr":"","en":"On disposal of a foreign subsidiary, how is the share of translation differences attributed to non-controlling interests treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: the differences attributed to non-controlling interests are derecognised but not reclassified to profit or loss on disposal of a subsidiary (IAS 21, para. 48B).","es":""},"common_error":{"fr":"","en":"Reclassifying the whole reserve without distinguishing the minorities' share.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is reclassified to profit or loss like the group's share","es":""},"correct":false,"feedback":{"fr":"","en":"Only the group's share is reclassified; that of the non-controlling interests is not (IAS 21, para. 48B).","es":""}},{"id":"B","text":{"fr":"","en":"It is carried to the group's reserves","es":""},"correct":false,"feedback":{"fr":"","en":"It is derecognised with the non-controlling interests, not carried to the group's reserves (IAS 21, para. 48B).","es":""}},{"id":"C","text":{"fr":"","en":"It stays indefinitely in equity in the interests' name","es":""},"correct":false,"feedback":{"fr":"","en":"On disposal of the subsidiary, it is derecognised (IAS 21, para. 48B).","es":""}},{"id":"D","text":{"fr":"","en":"It is derecognised, but not reclassified to profit or loss","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000083","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.GOODWILL_FV_ADJUSTMENTS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"GOODWILL_CURRENCY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS21.000011","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-goodwill"},"references":["IAS 21 §47"],"exercise":{"prompt":{"fr":"","en":"The goodwill arising on acquiring a Swiss subsidiary is expressed:","es":""},"explanation":{"fr":"","en":"Rule to remember: the goodwill of a foreign operation is expressed in its functional currency and translated at the closing rate (IAS 21, para. 47).","es":""},"common_error":{"fr":"","en":"Treating goodwill as an asset of the parent.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the subsidiary's functional currency, then translated at the closing rate","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In the parent's currency, frozen at the acquisition-date rate","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is treated as an asset of the foreign operation, therefore expressed in its functional currency (IAS 21, para. 47).","es":""}},{"id":"C","text":{"fr":"","en":"In the group's presentation currency, translated at the acquisition date only","es":""},"correct":false,"feedback":{"fr":"","en":"It is translated again at each reporting date at the closing rate, not frozen at acquisition (IAS 21, para. 47).","es":""}},{"id":"D","text":{"fr":"","en":"In the parent's functional currency, then translated at the average rate","es":""},"correct":false,"feedback":{"fr":"","en":"Neither the parent's currency nor the average rate applies: it is the closing rate, on a base in the subsidiary's currency (IAS 21, para. 47).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000084","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.GOODWILL_FV_ADJUSTMENTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GOODWILL_FROZEN_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000011","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-goodwill"},"references":["IAS 21 §47"],"exercise":{"prompt":{"fr":"","en":"The goodwill of a foreign operation is an asset of the acquiring group and therefore stays translated at the acquisition-date rate.","es":""},"explanation":{"fr":"","en":"Rule to remember: goodwill and fair value adjustments are assets and liabilities of the foreign operation, translated at the closing rate (IAS 21, para. 47).","es":""},"common_error":{"fr":"","en":"Freezing goodwill at the acquisition rate.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000085","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.GOODWILL_FV_ADJUSTMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"GOODWILL_TRANSLATED_CALC","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS21.000011","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"numeric-goodwill"},"references":["IAS 21 §47"],"exercise":{"prompt":{"fr":"","en":"Goodwill of GBP 120,000 arose on acquiring a UK subsidiary. Rates: 1.10 at acquisition, 1.16 at the reporting date (euros per pound). Calculate the goodwill translated at acquisition, at the reporting date and the translation difference.","es":""},"explanation":{"fr":"","en":"120,000 × 1.10 = €132,000; 120,000 × 1.16 = €139,200; difference = €7,200, in other comprehensive income. Rule to remember: the goodwill of a foreign operation is translated at the closing rate (IAS 21, para. 47).","es":""},"common_error":{"fr":"","en":"Leaving goodwill at its acquisition amount in euros.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Goodwill in pounds","es":""},"value":"120000","unit":"GBP"},{"label":{"fr":"","en":"Rate at acquisition","es":""},"value":"1.10","unit":"EUR/GBP"},{"label":{"fr":"","en":"Closing rate","es":""},"value":"1.16","unit":"EUR/GBP"}],"steps":[{"id":"g0","label":{"fr":"","en":"Goodwill at acquisition","es":""},"answer":132000,"tolerance":0,"unit":"EUR"},{"id":"g1","label":{"fr":"","en":"Goodwill at the reporting date","es":""},"answer":139200,"tolerance":0,"unit":"EUR"},{"id":"d","label":{"fr":"","en":"Translation difference on goodwill","es":""},"answer":7200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"g0","meaning":{"fr":"","en":"Goodwill at acquisition","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill in pounds","es":""},"value":120000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Rate at acquisition","es":""},"value":1.1,"unit":"EUR/GBP"}],"result":132000,"unit":"EUR"},{"step":"g1","meaning":{"fr":"","en":"Goodwill at the reporting date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill in pounds","es":""},"value":120000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"Closing rate","es":""},"value":1.16,"unit":"EUR/GBP"}],"result":139200,"unit":"EUR"}],"rationale":{"fr":"","en":"the goodwill of a foreign operation is translated at the closing rate (IAS 21, para. 47).","es":""},"references":["REF.IAS21.47"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000086","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.GOODWILL_FV_ADJUSTMENTS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"GENERIC","tested_point":"GOODWILL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS21.000011","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"entry-goodwill"},"references":["IAS 21 §47","IAS 21 §39","IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, the goodwill of a UK subsidiary is translated at a higher rate than at acquisition; the difference is €7,200. Record the consolidation entry.","es":""},"explanation":{"fr":"","en":"Debit goodwill 7,200; credit translation reserve 7,200, in other comprehensive income. Rule to remember: the translation difference on the goodwill of a foreign operation goes to other comprehensive income (IAS 21, paras. 39 and 41).","es":""},"common_error":{"fr":"","en":"Carrying the difference to profit or loss as an exchange gain.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"res","text":{"fr":"","en":"Translation reserve (other comprehensive income)","es":""}},{"id":"gain","text":{"fr":"","en":"Exchange gain (profit or loss)","es":""}},{"id":"imp","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"gw","side":"DEBIT","amount":7200,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":7200,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000087","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.INTRAGROUP_BALANCES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"INTRAGROUP_DIFFERENCE","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS21.000011","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-intragroup"},"references":["IAS 21 §44","IAS 21 §45","IAS 21 §46"],"exercise":{"prompt":{"fr":"","en":"The parent (functional currency: the euro) has a dollar trade receivable from its US subsidiary, to be settled shortly and not part of the net investment. Where does the exchange difference appear in the consolidated accounts?","es":""},"explanation":{"fr":"","en":"Rule to remember: the difference on an intragroup monetary balance stays in consolidated profit or loss, unless it forms part of the net investment (IAS 21, paras. 44 to 46).","es":""},"common_error":{"fr":"","en":"Believing intragroup elimination wipes out exchange differences.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No particular treatment, because eliminating intragroup balances removes the exchange effect","es":""},"correct":false,"feedback":{"fr":"","en":"Eliminating the balance does not remove the exchange difference, which remains in consolidated profit or loss (IAS 21, paras. 44 to 46).","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income, as for the other balances of the foreign operation","es":""},"correct":false,"feedback":{"fr":"","en":"Treatment in other comprehensive income is reserved for the net investment; this balance is not part of it (IAS 21, paras. 44 to 46).","es":""}},{"id":"C","text":{"fr":"","en":"As a reduction of the US subsidiary's goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"No charge against goodwill is provided for this difference (IAS 21, paras. 44 to 46).","es":""}},{"id":"D","text":{"fr":"","en":"In consolidated profit or loss, as elimination does not remove it","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000088","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.DIFFERENT_REPORTING_DATE","IAS21.FOREIGN_OPERATION.INTRAGROUP_BALANCES"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"GENERIC","tested_point":"CONSOLIDATION_STATEMENTS","difficulty":"ADVANCED","estimated_time_s":85,"lesson_id":"LS.IAS21.000011","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"pitfalls"},"references":["IAS 21 §44","IAS 21 §45","IAS 21 §46"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: intragroup foreign currency balances leave a difference in consolidated profit or loss outside the net investment, and significant rate changes between two reporting dates are adjusted for (IAS 21, paras. 44 to 46).","es":""},"common_error":{"fr":"","en":"Ignoring intragroup differences or changes between reporting dates.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"Eliminating intragroup balances removes every exchange difference from the consolidation.","es":""},"erroneous":true,"correction":{"fr":"","en":"A difference on an intragroup monetary balance stays in consolidated profit or loss, except for a net investment (IAS 21, paras. 44 to 46).","es":""}},{"id":"e2","text":{"fr":"","en":"When two reporting dates differ, the rate changes between the two dates are ignored.","es":""},"erroneous":true,"correction":{"fr":"","en":"The effects of significant rate changes between the two dates are adjusted for (IAS 21, paras. 44 to 46).","es":""}},{"id":"e3","text":{"fr":"","en":"Significant rate changes between two different reporting dates are adjusted for.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000089","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.INTERACTIONS.IFRS3"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHO_DETERMINES_GOODWILL","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS21.000011","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-links"},"references":["IAS 21 §47"],"exercise":{"prompt":{"fr":"","en":"In acquiring a foreign operation, who determines the amount of goodwill and what does IAS 21 say about it?","es":""},"explanation":{"fr":"","en":"Rule to remember: goodwill is determined by IFRS 3; IAS 21 treats it as an asset of the foreign operation, translated at the closing rate (IAS 21, para. 47).","es":""},"common_error":{"fr":"","en":"Attributing the calculation of goodwill to IAS 21.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 3 determines it; IAS 21 specifies its currency of expression and translation rate","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IAS 21 determines it and IFRS 3 sets its translation rate","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 does not calculate goodwill; it says in which currency it is expressed and at which rate it is translated (IAS 21, para. 47).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 3 determines it and also sets its translation rate into the presentation currency","es":""},"correct":false,"feedback":{"fr":"","en":"The translation rate is the one in IAS 21: the closing rate (IAS 21, para. 47).","es":""}},{"id":"D","text":{"fr":"","en":"The standards do not deal with it precisely, each group choosing its own method","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 deals with its currency and translation rate (IAS 21, para. 47).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000090","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.INTERACTIONS.IFRS10"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"LOSS_OF_CONTROL_ROLES","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS21.000011","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-links"},"references":["IAS 21 §48A"],"exercise":{"prompt":{"fr":"","en":"A parent sells part of its foreign subsidiary, loses control and keeps an interest. What are the respective roles of IFRS 10 and IAS 21?","es":""},"explanation":{"fr":"","en":"Rule to remember: loss of control of a subsidiary is treated as a disposal by IAS 21 even if an interest is retained (IAS 21, para. 48A); the notion of control belongs to IFRS 10.","es":""},"common_error":{"fr":"","en":"Waiting for the sale of the retained interest to reclassify.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 10 deals with the subject, and IAS 21 then provides no reclassification of the reserve","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 treats loss of control as a disposal, with reclassification of the reserve (IAS 21, para. 48A).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 21 defines control, and IFRS 10 sets the reclassification of the translation reserve","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification of the reserve is an IAS 21 rule; the notion of control belongs to IFRS 10 (IAS 21, para. 48A).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 10 governs the loss of control; IAS 21 treats it as a disposal, even with an interest retained","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The transaction is characterised as a disposal when the retained interest is sold","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 treats loss of control as a disposal, without waiting for the sale of the retained interest (IAS 21, para. 48A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000091","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.RECLASSIFICATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DEBIT_RESERVE_RECLASS","difficulty":"INTERMEDIATE","estimated_time_s":65,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-reclass"},"references":["IAS 21 §48"],"exercise":{"prompt":{"fr":"","en":"A debit translation reserve of €24,000 relates to a foreign subsidiary that has been sold. How is it treated on disposal?","es":""},"explanation":{"fr":"","en":"Rule to remember: the accumulated translation differences, credit or debit, are reclassified to profit or loss on disposal (IAS 21, para. 48).","es":""},"common_error":{"fr":"","en":"Reserving reclassification for credit reserves only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It stays in equity, because a debit reserve is not recycled","es":""},"correct":false,"feedback":{"fr":"","en":"The accumulated amount is reclassified to profit or loss whether it is a credit or a debit (IAS 21, para. 48).","es":""}},{"id":"B","text":{"fr":"","en":"It is reclassified to profit or loss, as a loss, on disposal","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is charged against the goodwill of the subsidiary sold","es":""},"correct":false,"feedback":{"fr":"","en":"The accumulated amount goes to profit or loss, not as a reduction of goodwill (IAS 21, para. 48).","es":""}},{"id":"D","text":{"fr":"","en":"It is transferred to retained earnings with no effect on profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassification to profit or loss is required; a direct transfer to reserves is not (IAS 21, para. 48).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000092","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.RECLASSIFICATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"RESERVE_RECLASSIFIED_TRUE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-reclass"},"references":["IAS 21 §48"],"exercise":{"prompt":{"fr":"","en":"On disposal of a foreign subsidiary, the accumulated translation reserve relating to it is reclassified from equity to profit or loss, even though it already went through other comprehensive income.","es":""},"explanation":{"fr":"","en":"Rule to remember: on disposal, the accumulated translation differences are reclassified from equity to profit or loss (IAS 21, para. 48).","es":""},"common_error":{"fr":"","en":"Thinking earlier passage through other comprehensive income rules out reclassification.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000093","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.RECLASSIFICATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"TOTAL_RESULT_ON_DISPOSAL","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"numeric-reclass"},"references":["IAS 21 §48"],"exercise":{"prompt":{"fr":"","en":"A foreign subsidiary is sold with a gain on disposal of €90,000 before reclassification. The related translation reserve is a debit of €24,000. Calculate the amount reclassified (negative if a loss) and the total result of the disposal.","es":""},"explanation":{"fr":"","en":"The debit reserve is reclassified as a loss of €24,000; total result = 90,000 − 24,000 = €66,000. Rule to remember: the accumulated translation differences are reclassified to profit or loss on disposal, whether credit or debit (IAS 21, para. 48).","es":""},"common_error":{"fr":"","en":"Adding the debit reserve to the gain instead of deducting it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gain on disposal before reclassification","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Debit translation reserve","es":""},"value":"24000","unit":"EUR"}],"steps":[{"id":"rc","label":{"fr":"","en":"Amount reclassified to profit or loss","es":""},"answer":-24000,"tolerance":0,"unit":"EUR"},{"id":"tot","label":{"fr":"","en":"Total result of the disposal","es":""},"answer":66000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"tot","meaning":{"fr":"","en":"Total result of the disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gain on disposal before reclassification","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Debit translation reserve","es":""},"value":24000,"unit":"EUR"}],"result":66000,"unit":"EUR"}],"rationale":{"fr":"","en":"the accumulated translation differences are reclassified to profit or loss on disposal, whether credit or debit (IAS 21, para. 48).","es":""},"references":["REF.IAS21.48"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000094","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.RECLASSIFICATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"GENERIC","tested_point":"DEBIT_RESERVE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"entry-reclass"},"references":["IAS 21 §48"],"exercise":{"prompt":{"fr":"","en":"The accumulated translation reserve of a subsidiary sold is a debit of €24,000. Record the reclassification entry to profit or loss.","es":""},"explanation":{"fr":"","en":"Debit loss on disposal 24,000; credit translation reserve 24,000: the debit reserve is cleared. Rule to remember: the accumulated translation differences are reclassified to profit or loss on disposal (IAS 21, para. 48).","es":""},"common_error":{"fr":"","en":"Reversing the direction of the entry for a debit reserve.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"loss","text":{"fr":"","en":"Loss on disposal (reclassified to profit or loss)","es":""}},{"id":"res","text":{"fr":"","en":"Translation reserve (other comprehensive income)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}}],"lines":[{"id":"l1","account":"loss","side":"DEBIT","amount":24000,"given":["account","side"]},{"id":"l2","account":"res","side":"CREDIT","amount":24000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000095","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.PARTIAL_PROPORTIONATE"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"PARTIAL_RECLASS_CALC","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"numeric-partial"},"references":["IAS 21 §48C"],"exercise":{"prompt":{"fr":"","en":"A group sells 30% of its interest in a foreign associate and keeps significant influence (other partial disposal). The related accumulated translation reserve is €80,000. Calculate the share reclassified to profit or loss and the balance left in the reserve.","es":""},"explanation":{"fr":"","en":"80,000 × 30% = €24,000 reclassified; balance = 80,000 − 24000 = €56,000. Rule to remember: for another partial disposal, the proportionate share of the accumulated amount is reclassified to profit or loss (IAS 21, para. 48C). Professional judgement: the scope of a partial disposal remains a point of judgement (IAS 21, para. 48D).","es":""},"common_error":{"fr":"","en":"Reclassifying the whole reserve for a partial disposal.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Accumulated reserve","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Share of the interest sold","es":""},"value":"30","unit":"%"}],"steps":[{"id":"rc","label":{"fr":"","en":"Share reclassified to profit or loss","es":""},"answer":24000,"tolerance":0,"unit":"EUR"},{"id":"rest","label":{"fr":"","en":"Balance kept in the reserve","es":""},"answer":56000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"rest","meaning":{"fr":"","en":"Balance kept in the reserve","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accumulated reserve","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share reclassified to profit or loss","es":""},"value":24000,"unit":"EUR"}],"result":56000,"unit":"EUR"}],"rationale":{"fr":"","en":"for another partial disposal, the proportionate share of the accumulated amount is reclassified to profit or loss (IAS 21, para. 48C). Professional judgement: the scope of a partial disposal remains a point of judgement (IAS 21, para. 48D).","es":""},"references":["REF.IAS21.48C"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000096","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.NCI_DERECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"NCI_DERECOGNITION_CALC","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-nci"},"references":["IAS 21 §48B"],"exercise":{"prompt":{"fr":"","en":"A foreign subsidiary is sold. The accumulated translation reserve is €90,000, of which 25% is attributed to non-controlling interests (case data). Calculate the share derecognised without reclassification and the share reclassified to profit or loss.","es":""},"explanation":{"fr":"","en":"90,000 × 25% = €22,500 derecognised; 90,000 − 22500 = €67,500 reclassified. Rule to remember: the non-controlling interests' share is derecognised, not reclassified to profit or loss (IAS 21, para. 48B).","es":""},"common_error":{"fr":"","en":"Reclassifying all 90,000 to profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Accumulated reserve","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Share attributed to non-controlling interests (case data)","es":""},"value":"25","unit":"%"}],"steps":[{"id":"nci","label":{"fr":"","en":"Share derecognised (non-controlling interests)","es":""},"answer":22500,"tolerance":0,"unit":"EUR"},{"id":"grp","label":{"fr":"","en":"Share reclassified to profit or loss","es":""},"answer":67500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"grp","meaning":{"fr":"","en":"Share reclassified to profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accumulated reserve","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share derecognised (non-controlling interests)","es":""},"value":22500,"unit":"EUR"}],"result":67500,"unit":"EUR"}],"rationale":{"fr":"","en":"the non-controlling interests' share is derecognised, not reclassified to profit or loss (IAS 21, para. 48B).","es":""},"references":["REF.IAS21.48B"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000097","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.WRITE_DOWN_NOT_DISPOSAL"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WRITE_DOWN_NOT_DISPOSAL","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-writedown"},"references":["IAS 21 §49"],"exercise":{"prompt":{"fr":"","en":"A foreign operation is heavily written down, but the group keeps its whole interest. What happens to the related translation reserve?","es":""},"explanation":{"fr":"","en":"Rule to remember: a write-down of a foreign operation without disposal is not a partial disposal and triggers no reclassification (IAS 21, para. 49).","es":""},"common_error":{"fr":"","en":"Equating a write-down with a partial disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing is reclassified: a write-down without disposal is not a partial disposal","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is reclassified to profit or loss in proportion to the write-down","es":""},"correct":false,"feedback":{"fr":"","en":"A write-down is not a partial disposal; no reclassification is triggered (IAS 21, para. 49).","es":""}},{"id":"C","text":{"fr":"","en":"It is cancelled in full against the impairment loss","es":""},"correct":false,"feedback":{"fr":"","en":"The reserve and the impairment loss are treated separately; the reserve does not move without disposal (IAS 21, para. 49).","es":""}},{"id":"D","text":{"fr":"","en":"It is transferred to the non-controlling interests","es":""},"correct":false,"feedback":{"fr":"","en":"No transfer is provided for in the absence of disposal (IAS 21, para. 49).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000098","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.DEEMED_DISPOSAL","IAS21.DISPOSAL.NCI_DERECOGNITION","IAS21.DISPOSAL.PARTIAL_DEFINITION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"GENERIC","tested_point":"LOSS_OF_CONTROL_MINI","difficulty":"EXPERT","estimated_time_s":260,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"judgment"},"references":["IAS 21 §48A","IAS 21 §48B","IAS 21 §48D"],"exercise":{"prompt":{"fr":"","en":"Sale of 60% of a foreign subsidiary by the Altrane group","es":""},"explanation":{"fr":"","en":"Professional judgement: the professional characterises the transaction (loss of control treated as a disposal), isolates the non-controlling interests' share, reclassifies the balance and documents the scope adopted (IAS 21, paras. 48A, 48B and 48D).","es":""},"common_error":{"fr":"","en":"Reclassifying the whole reserve or nothing because an interest is retained.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The Altrane group sells 60% of its foreign subsidiary Betrane and loses control, while keeping 40% that gives it significant influence (case assumption). Betrane's accumulated translation reserve is a credit of €70,000, of which 10% is attributed to non-controlling interests (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"How should the transaction be characterised for the treatment of the reserve?","es":""},"explanation":{"fr":"","en":"Rule to remember: loss of control of a subsidiary is treated as a disposal (IAS 21, para. 48A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an ordinary partial disposal, because 40% remains held","es":""},"correct":false,"feedback":{"fr":"","en":"Loss of control is treated as a disposal, even with a retained interest (IAS 21, para. 48A).","es":""}},{"id":"B","text":{"fr":"","en":"As a write-down, with no effect on the reserve","es":""},"correct":false,"feedback":{"fr":"","en":"A sale that causes loss of control is not a write-down (IAS 21, para. 49).","es":""}},{"id":"C","text":{"fr":"","en":"As a disposal, loss of control being treated as one","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As a change of functional currency, with no reclassification","es":""},"correct":false,"feedback":{"fr":"","en":"No change of functional currency is at issue in this scenario (IAS 21, para. 48A).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the share of the reserve derecognised without reclassification and the share reclassified to profit or loss.","es":""},"explanation":{"fr":"","en":"70,000 × 10% = €7,000 derecognised; 70,000 − 7000 = €63,000 reclassified. Rule to remember: the non-controlling interests' share is derecognised, not reclassified (IAS 21, para. 48B).","es":""},"common_error":{"fr":"","en":"Reclassifying the whole reserve to profit or loss: the non-controlling interests' share is derecognised without reclassification.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Accumulated reserve","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Share of non-controlling interests (case data)","es":""},"value":"10","unit":"%"}],"steps":[{"id":"nci","label":{"fr":"","en":"Share derecognised","es":""},"answer":7000,"tolerance":0,"unit":"EUR"},{"id":"rc","label":{"fr":"","en":"Share reclassified to profit or loss","es":""},"answer":63000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"rc","meaning":{"fr":"","en":"Share reclassified to profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accumulated reserve","es":""},"value":70000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share derecognised","es":""},"value":7000,"unit":"EUR"}],"result":63000,"unit":"EUR"}],"rationale":{"fr":"","en":"the non-controlling interests' share is derecognised, not reclassified (IAS 21, para. 48B).","es":""},"references":["REF.IAS21.48B"]}},{"prompt":{"fr":"","en":"The exact scope of a partial disposal is a point of judgement to document, since diverse practices have been noted.","es":""},"explanation":{"fr":"","en":"Rule to remember: a partial disposal is any reduction in the interest outside the 48A cases; Professional judgement: its scope is subject to diverse practice to be documented (IAS 21, para. 48D).","es":""},"common_error":{"fr":"","en":"Treating the scope of a partial disposal as obvious: diversity in practice makes it a judgement to document.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000099","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.DEEMED_DISPOSAL"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"DEEMED_DISPOSAL_EVENTS","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-deemed"},"references":["IAS 21 §48A"],"exercise":{"prompt":{"fr":"","en":"Which events involving a foreign operation are treated as a disposal, even if an interest is retained? (Several answers.)","es":""},"explanation":{"fr":"","en":"Rule to remember: the loss of control of a subsidiary, or a retained interest in an associate or joint arrangement that becomes a financial asset, is treated as a disposal; a write-down is not (IAS 21, paras. 48A and 49).","es":""},"common_error":{"fr":"","en":"Treating a write-down as a disposal.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Loss of control of a subsidiary","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A partial disposal of an associate after which the retained interest is a financial asset","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A write-down of the investment with no reduction of it","es":""},"correct":false,"feedback":{"fr":"","en":"A write-down without any reduction of the interest is not a disposal (IAS 21, para. 49).","es":""}},{"id":"D","text":{"fr":"","en":"A partial disposal of a joint arrangement after which the retained interest is a financial asset","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000100","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.DEEMED_DISPOSAL","IAS21.DISPOSAL.NCI_DERECOGNITION","IAS21.DISPOSAL.PARTIAL_PROPORTIONATE"],"dimension":"DOCUMENTATION","format":"ORDERING","context":"GENERIC","tested_point":"DISPOSAL_ANALYSIS_STEPS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS21.000012","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"judgment"},"references":["IAS 21 §48A","IAS 21 §48B","IAS 21 §48C"],"exercise":{"prompt":{"fr":"","en":"Put in a logical order the approach for analysing the translation reserve when an interest in a foreign operation is reduced.","es":""},"explanation":{"fr":"","en":"Approach: this order is a proposed working approach, not an order imposed by the standard; it relies on the cases treated as a disposal (IAS 21, para. 48A), the non-controlling interests' share (IAS 21, para. 48B) and the proportionate share (IAS 21, para. 48C). Rule to remember: the scope of a partial disposal remains a point of judgement to document.","es":""},"common_error":{"fr":"","en":"Calculating the share before characterising the transaction.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Characterise the transaction: full disposal, event treated as a disposal, partial disposal with or without loss of control","es":""}},{"id":"s2","text":{"fr":"","en":"Identify the accumulated reserve of the operation concerned","es":""}},{"id":"s3","text":{"fr":"","en":"Isolate the share attributed to non-controlling interests","es":""}},{"id":"s4","text":{"fr":"","en":"Reclassify or reattribute the share concerned and record the entry","es":""}},{"id":"s5","text":{"fr":"","en":"Document the reading adopted of the scope of the disposal","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000101","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.HYPERINFLATION.TRANSLATION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"HYPER_RATE_FOR_PROFIT","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS21.000013","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000013","section_id":"rule-translation"},"references":["IAS 21 §42","IAS 21 §43"],"exercise":{"prompt":{"fr":"","en":"A foreign operation has the currency of a hyperinflationary economy as its functional currency. Which rate translates its profit for the year after restatement?","es":""},"explanation":{"fr":"","en":"Rule to remember: for a hyperinflationary operation, all restated amounts are translated at the latest closing rate (IAS 21, paras. 42 and 43).","es":""},"common_error":{"fr":"","en":"Reusing the average rate of the general regime.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average rate of the year, as in the general case","es":""},"correct":false,"feedback":{"fr":"","en":"In a hyperinflationary economy, all amounts are translated at the latest closing rate, with no average rate (IAS 21, paras. 42 and 43).","es":""}},{"id":"B","text":{"fr":"","en":"The latest closing rate, as for all amounts","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The rates at the transaction dates, month by month","es":""},"correct":false,"feedback":{"fr":"","en":"The hyperinflationary regime does not use transaction rates; it uses the latest closing rate (IAS 21, paras. 42 and 43).","es":""}},{"id":"D","text":{"fr":"","en":"The closing rate of the previous year, to neutralise inflation","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is the latest one, not that of the previous year; inflation is handled by the prior restatement (IAS 21, paras. 42 and 43).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000102","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.HYPERINFLATION.IAS29_LINK","IAS21.INTERACTIONS.IAS29"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ORDER_OF_OPERATIONS","difficulty":"ADVANCED","estimated_time_s":50,"lesson_id":"LS.IAS21.000013","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000013","section_id":"rule-link"},"references":["IAS 21 §42","IAS 21 §43"],"exercise":{"prompt":{"fr":"","en":"For a hyperinflationary operation, one first restates the statements under IAS 29, then translates the restated amounts at the latest closing rate.","es":""},"explanation":{"fr":"","en":"Rule to remember: one first restates under IAS 29, then translates at the latest closing rate (IAS 21, paras. 42 and 43).","es":""},"common_error":{"fr":"","en":"Reversing restatement and translation.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000103","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.HYPERINFLATION.TRANSLATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"HYPER_TRANSLATION_CALC","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS21.000013","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000013","section_id":"numeric-hyper"},"references":["IAS 21 §42","IAS 21 §43"],"exercise":{"prompt":{"fr":"","en":"After restatement under IAS 29, an item of a hyperinflationary operation stands at LCU 7,500,000 (case data). The latest closing rate is 0.0008 euro per LCU. Calculate the translated amount in euros.","es":""},"explanation":{"fr":"","en":"7,500,000 × 0.0008 = €6,000. Case convention: the restatement is case data. Rule to remember: restated amounts are translated at the latest closing rate (IAS 21, paras. 42 and 43).","es":""},"common_error":{"fr":"","en":"Using a historical or average rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Restated amount","es":""},"value":"7500000","unit":"LCU"},{"label":{"fr":"","en":"Latest closing rate","es":""},"value":"0.0008","unit":"EUR/LCU"}],"steps":[{"id":"amt","label":{"fr":"","en":"Translated amount","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"amt","meaning":{"fr":"","en":"Translated amount","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Restated amount","es":""},"value":7500000,"unit":"LCU"},{"symbol":"b","meaning":{"fr":"","en":"Latest closing rate","es":""},"value":0.0008,"unit":"EUR/LCU"}],"result":6000,"unit":"EUR"}],"rationale":{"fr":"","en":"restated amounts are translated at the latest closing rate (IAS 21, paras. 42 and 43).","es":""},"references":["REF.IAS21.42","REF.IAS21.43"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000104","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.HYPERINFLATION.CUMULATIVE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"CUMULATIVE_BEFORE_HYPER_FILL","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS21.000013","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000013","section_id":"rule-cumulative"},"references":["IAS 21"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: differences accumulated before hyperinflation stay in equity until disposal; no internal reclassification (IAS 21, Interpretations Committee decision of 2020).","es":""},"common_error":{"fr":"","en":"Reclassifying past differences to profit or loss on the switch.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Translation differences accumulated before the operation becomes hyperinflationary stay {{b1}} until {{b2}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"in equity","es":""}},{"id":"b","text":{"fr":"","en":"in profit or loss of the year","es":""}},{"id":"c","text":{"fr":"","en":"in goodwill","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"the next reporting date","es":""}},{"id":"b","text":{"fr":"","en":"the disposal of the operation","es":""}},{"id":"c","text":{"fr":"","en":"the switch to hyperinflation","es":""}}],"answer":"b"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000105","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.HYPERINFLATION.CUMULATIVE_DIFFERENCES","IAS21.HYPERINFLATION.IAS29_LINK"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SWITCH_YEAR_CASE","difficulty":"EXPERT","estimated_time_s":120,"lesson_id":"LS.IAS21.000013","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000013","section_id":"judgment"},"references":["IAS 21","IAS 21 §42","IAS 21 §43"],"exercise":{"prompt":{"fr":"","en":"A foreign subsidiary becomes hyperinflationary during the year; its translation differences accumulated until then are €12,000 credit. What must the accountant do?","es":""},"explanation":{"fr":"","en":"Rule to remember: differences accumulated before hyperinflation stay in equity until disposal (IAS 21, Interpretations Committee decision of 2020); one restates then translates (IAS 21, paras. 42 and 43). Professional judgement: the accountant documents the switch date and the balance isolated.","es":""},"common_error":{"fr":"","en":"Recycling past differences and reversing the order of operations.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reclassify the €12,000 to profit or loss at the date of the switch","es":""},"correct":false,"feedback":{"fr":"","en":"The switch is not a disposal: no internal reclassification is provided for (IAS 21, Interpretations Committee decision of 2020).","es":""}},{"id":"B","text":{"fr":"","en":"Translate first at the closing rate, then restate under IAS 29","es":""},"correct":false,"feedback":{"fr":"","en":"The order is restatement then translation (IAS 21, paras. 42 and 43).","es":""}},{"id":"C","text":{"fr":"","en":"Leave them in equity until disposal, then restate and translate","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Cancel the €12,000 against retained earnings","es":""},"correct":false,"feedback":{"fr":"","en":"No cancellation is provided for: the differences stay in equity until disposal (IAS 21, Interpretations Committee decision of 2020).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000106","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.DEFINITION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"ADMIN_DELAY_EXCHANGEABLE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS21.000014","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-def"},"references":["IAS 21 §8","IAS 21 §8A","IAS 21 §8B"],"exercise":{"prompt":{"fr":"","en":"To obtain another currency, an entity must wait three business days, the usual delay, in a market where the transaction would create enforceable rights. Is the currency exchangeable?","es":""},"explanation":{"fr":"","en":"Rule to remember: a normal administrative delay is compatible with exchangeability (IAS 21, paras. 8, 8A and 8B).","es":""},"common_error":{"fr":"","en":"Requiring an instantaneous transaction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: any delay, even a usual one, makes the currency non-exchangeable","es":""},"correct":false,"feedback":{"fr":"","en":"The definition tolerates a timeframe allowing a normal administrative delay (IAS 21, paras. 8, 8A and 8B).","es":""}},{"id":"B","text":{"fr":"","en":"No: the currency is exchangeable only if the transaction is instantaneous","es":""},"correct":false,"feedback":{"fr":"","en":"Instantaneity is not required: a normal administrative delay is compatible (IAS 21, paras. 8, 8A and 8B).","es":""}},{"id":"C","text":{"fr":"","en":"It depends on the percentage of the balance the entity wishes to convert","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no percentage; the relevant notion is whether the amount is significant (IAS 21, paras. 8A and 8B).","es":""}},{"id":"D","text":{"fr":"","en":"Yes: a normal administrative delay does not prevent exchangeability","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000107","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.DEFINITION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ASSESSED_PER_DATE_AND_PURPOSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000014","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-def"},"references":["IAS 21 §8A","IAS 21 §8B"],"exercise":{"prompt":{"fr":"","en":"The exchangeability of a currency is assessed once and for all, regardless of the measurement date or the purpose.","es":""},"explanation":{"fr":"","en":"Rule to remember: exchangeability is assessed at the measurement date and for a specified purpose (IAS 21, paras. 8A and 8B).","es":""},"common_error":{"fr":"","en":"Fixing the assessment outside any date or purpose.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000108","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.DEFINITION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"EXCHANGEABLE_SITUATIONS","difficulty":"INTERMEDIATE","estimated_time_s":85,"lesson_id":"LS.IAS21.000014","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"example"},"references":["IAS 21 §8","IAS 21 §8A","IAS 21 §8B"],"exercise":{"prompt":{"fr":"","en":"Classify each Dalvane situation according to whether the currency is exchangeable or not.","es":""},"explanation":{"fr":"","en":"Rule to remember: a currency is exchangeable if it can be obtained within a normal administrative delay via a market creating enforceable rights; it is not if only an insignificant amount can be obtained (IAS 21, paras. 8, 8A and 8B).","es":""},"common_error":{"fr":"","en":"Confusing volatility or cost with non-exchangeability.","es":""},"format":"CLASSIFICATION","categories":[{"id":"c1","text":{"fr":"","en":"Exchangeable currency","es":""}},{"id":"c2","text":{"fr":"","en":"Non-exchangeable currency","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The currency is obtained within a few days via a market creating enforceable rights","es":""},"category":"c1"},{"id":"i2","text":{"fr":"","en":"The rate is very volatile but the currency remains available in sufficient quantity","es":""},"category":"c1"},{"id":"i3","text":{"fr":"","en":"A high fee is charged, but the currency is obtained within a normal administrative delay","es":""},"category":"c1"},{"id":"i4","text":{"fr":"","en":"Access to foreign currency is limited to an insignificant quantity","es":""},"category":"c2"},{"id":"i5","text":{"fr":"","en":"No mechanism offers a rate giving enforceable rights and the authorities allow only a trivial amount","es":""},"category":"c2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000109","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.ESTIMATE_SPOT_RATE"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"ESTIMATED_RATE_EFFECT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS21.000014","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"numeric-estimate"},"references":["IAS 21 §19A"],"exercise":{"prompt":{"fr":"","en":"A balance of LCU 5,000,000 is held in a non-exchangeable currency. The entity estimates the spot rate at 0.0004 euro per LCU; the quoted official rate is 0.0005. Calculate the amount at the two rates and the effect of the estimate.","es":""},"explanation":{"fr":"","en":"5,000,000 × 0.0004 = €2,000; 5,000,000 × 0.0005 = €2,500; effect = -€500. Case convention: the estimated rate is case data. Rule to remember: if a currency is not exchangeable, the entity estimates the spot rate with no imposed technique (IAS 21, para. 19A).","es":""},"common_error":{"fr":"","en":"Using the quoted rate without estimating.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Balance in LCU","es":""},"value":"5000000","unit":"LCU"},{"label":{"fr":"","en":"Estimated rate (case data)","es":""},"value":"0.0004","unit":"EUR/LCU"},{"label":{"fr":"","en":"Quoted official rate","es":""},"value":"0.0005","unit":"EUR/LCU"}],"steps":[{"id":"est","label":{"fr":"","en":"Amount at the estimated rate","es":""},"answer":2000,"tolerance":0,"unit":"EUR"},{"id":"ref","label":{"fr":"","en":"Amount at the quoted rate","es":""},"answer":2500,"tolerance":0,"unit":"EUR"},{"id":"eff","label":{"fr":"","en":"Effect of the estimate","es":""},"answer":-500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"est","meaning":{"fr":"","en":"Amount at the estimated rate","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Balance in LCU","es":""},"value":5000000,"unit":"LCU"},{"symbol":"b","meaning":{"fr":"","en":"Estimated rate (case data)","es":""},"value":0.0004,"unit":"EUR/LCU"}],"result":2000,"unit":"EUR"},{"step":"ref","meaning":{"fr":"","en":"Amount at the quoted rate","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Balance in LCU","es":""},"value":5000000,"unit":"LCU"},{"symbol":"b","meaning":{"fr":"","en":"Quoted official rate","es":""},"value":0.0005,"unit":"EUR/LCU"}],"result":2500,"unit":"EUR"}],"rationale":{"fr":"","en":"if a currency is not exchangeable, the entity estimates the spot rate with no imposed technique (IAS 21, para. 19A).","es":""},"references":["REF.IAS21.19A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000110","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.ESTIMATE_SPOT_RATE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NO_IMPOSED_TECHNIQUE","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS21.000014","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-estimate"},"references":["IAS 21 §19A"],"exercise":{"prompt":{"fr":"","en":"To estimate a spot rate for lack of exchangeability, what does the standard provide about the technique?","es":""},"explanation":{"fr":"","en":"Rule to remember: the entity estimates the spot rate so as to reflect an orderly transaction between market participants; no single technique is imposed (IAS 21, para. 19A).","es":""},"common_error":{"fr":"","en":"Imposing a technique or a prudential rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average of the rates of the last twelve months is mandatory","es":""},"correct":false,"feedback":{"fr":"","en":"The standard imposes no technique, and a historical average does not target the measurement date (IAS 21, para. 19A).","es":""}},{"id":"B","text":{"fr":"","en":"The quoted official rate must always be used without adjustment","es":""},"correct":false,"feedback":{"fr":"","en":"An observable rate may be used without adjustment, but this is not mandatory: another technique is possible (IAS 21, para. 19A).","es":""}},{"id":"C","text":{"fr":"","en":"No technique is imposed; an orderly transaction is the aim","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The least favourable rate must be used out of prudence","es":""},"correct":false,"feedback":{"fr":"","en":"Prudence is not the objective of the estimate; it is to reflect an orderly transaction (IAS 21, para. 19A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000111","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.DISCLOSURE"],"dimension":"DOCUMENTATION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"DISCLOSURES_WHEN_ESTIMATING","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS21.000014","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-disclosure"},"references":["IAS 21 §57A"],"exercise":{"prompt":{"fr":"","en":"When the entity estimates a spot rate for lack of exchangeability, which information does it give? (Several answers.)","es":""},"explanation":{"fr":"","en":"Rule to remember: the entity discloses the nature and financial effects, the rate(s) used, the estimation process and the risks (IAS 21, para. 57A).","es":""},"common_error":{"fr":"","en":"Limiting disclosure to the rate used without describing the process or the risks.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The nature and financial effects of the lack of exchangeability","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The spot rate(s) used","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The detail of all the exchange transactions of the year","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for the nature and effects, the rates used, the estimation process and the risks, not an exhaustive detail of transactions (IAS 21, para. 57A).","es":""}},{"id":"D","text":{"fr":"","en":"The estimation process and the risks to which the entity is exposed","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000112","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.EFFECTIVE_DATE_TRANSITION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"EFFECTIVE_2025","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS21.000014","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-effective"},"references":["IAS 21 §60L","IAS 21 §60M"],"exercise":{"prompt":{"fr":"","en":"An entity's year begins on 1 July 2024 and it does not early-apply the amendment on exchangeability. Must it apply it to that year?","es":""},"explanation":{"fr":"","en":"Rule to remember: the amendment applies to periods beginning on or after 1 January 2025, with early application permitted (IAS 21, para. 60L); comparatives are not restated on transition (IAS 21, para. 60M).","es":""},"common_error":{"fr":"","en":"Confusing the application date with the publication date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: it applies from publication, including to current years","es":""},"correct":false,"feedback":{"fr":"","en":"The application date is 1 January 2025 (IAS 21, para. 60L).","es":""}},{"id":"B","text":{"fr":"","en":"No: it applies to periods beginning on or after 1 January 2025, with early application permitted","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes: it applies to periods beginning on or after 1 January 2024, with no possibility of early application","es":""},"correct":false,"feedback":{"fr":"","en":"The application date is 1 January 2025, not 2024 (IAS 21, para. 60L).","es":""}},{"id":"D","text":{"fr":"","en":"No: it cannot be applied early","es":""},"correct":false,"feedback":{"fr":"","en":"Early application is permitted and must be disclosed (IAS 21, para. 60L).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000113","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.ESTIMATE_SPOT_RATE","IAS21.EXCHANGEABILITY.DISCLOSURE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"GENERIC","tested_point":"NON_EXCHANGEABLE_FILE_MINI","difficulty":"EXPERT","estimated_time_s":270,"lesson_id":"LS.IAS21.000014","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"judgment"},"references":["IAS 21 §8","IAS 21 §8A","IAS 21 §8B","IAS 21 §19A","IAS 21 §57A"],"exercise":{"prompt":{"fr":"","en":"Exchangeability file of the subsidiary Cormane","es":""},"explanation":{"fr":"","en":"Professional judgement: the professional assesses exchangeability at the measurement date, estimates the rate with no imposed technique, measures the effect and prepares the note (IAS 21, paras. 8A, 8B, 19A and 57A).","es":""},"common_error":{"fr":"","en":"Using the official rate without analysing exchangeability.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The subsidiary Cormane of the Estrane group holds a balance of LCU 3,000,000. The authorities allow access to foreign currency only for a trivial amount and no mechanism offers an enforceable rate. The quoted official rate is 0.0008 euro per LCU; the group estimates the spot rate at 0.0006 (case data) using a technique it has adopted.","es":""},"parts":[{"prompt":{"fr":"","en":"How should the local currency be characterised at the measurement date?","es":""},"explanation":{"fr":"","en":"Rule to remember: a currency is not exchangeable if the entity can obtain only an insignificant amount (IAS 21, paras. 8A and 8B).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Exchangeable, because an official rate is quoted","es":""},"correct":false,"feedback":{"fr":"","en":"A quoted rate is not enough: the currency must be obtainable through a mechanism creating enforceable rights (IAS 21, paras. 8, 8A and 8B).","es":""}},{"id":"B","text":{"fr":"","en":"Not exchangeable: only an insignificant amount is obtainable","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Exchangeable, but only for settlements, never for translation","es":""},"correct":false,"feedback":{"fr":"","en":"Exchangeability is assessed for a specified purpose, but here access is limited to a trivial amount (IAS 21, paras. 8A and 8B).","es":""}},{"id":"D","text":{"fr":"","en":"Not exchangeable only if the official rate is volatile","es":""},"correct":false,"feedback":{"fr":"","en":"Volatility is not the test for non-exchangeability (IAS 21, paras. 8A and 8B).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the balance at the estimated rate, at the official rate and the effect of the estimate.","es":""},"explanation":{"fr":"","en":"3,000,000 × 0.0006 = €1,800; 3,000,000 × 0.0008 = €2,400; effect = -€600. Rule to remember: the entity estimates the spot rate with no imposed technique (IAS 21, para. 19A).","es":""},"common_error":{"fr":"","en":"Using the official rate when it is not representative: the entity estimates the spot rate, here 0.0006, giving a −€600 effect.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Balance in LCU","es":""},"value":"3000000","unit":"LCU"},{"label":{"fr":"","en":"Estimated rate","es":""},"value":"0.0006","unit":"EUR/LCU"},{"label":{"fr":"","en":"Official rate","es":""},"value":"0.0008","unit":"EUR/LCU"}],"steps":[{"id":"est","label":{"fr":"","en":"Amount at the estimated rate","es":""},"answer":1800,"tolerance":0,"unit":"EUR"},{"id":"off","label":{"fr":"","en":"Amount at the official rate","es":""},"answer":2400,"tolerance":0,"unit":"EUR"},{"id":"eff","label":{"fr":"","en":"Effect of the estimate","es":""},"answer":-600,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"est","meaning":{"fr":"","en":"Amount at the estimated rate","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Balance in LCU","es":""},"value":3000000,"unit":"LCU"},{"symbol":"b","meaning":{"fr":"","en":"Estimated rate","es":""},"value":0.0006,"unit":"EUR/LCU"}],"result":1800,"unit":"EUR"},{"step":"off","meaning":{"fr":"","en":"Amount at the official rate","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Balance in LCU","es":""},"value":3000000,"unit":"LCU"},{"symbol":"b","meaning":{"fr":"","en":"Official rate","es":""},"value":0.0008,"unit":"EUR/LCU"}],"result":2400,"unit":"EUR"}],"rationale":{"fr":"","en":"the entity estimates the spot rate with no imposed technique (IAS 21, para. 19A).","es":""},"references":["REF.IAS21.19A"]}},{"prompt":{"fr":"","en":"Which of these must the note contain? (Several answers.)","es":""},"explanation":{"fr":"","en":"Rule to remember: the note discloses nature and effects, rates used, estimation process and risks (IAS 21, para. 57A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The nature and financial effects of the lack of exchangeability","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The estimated spot rate and the estimation process","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The risks to which the group is exposed","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The itemised detail of each of the group's exchange transactions","es":""},"correct":false,"feedback":{"fr":"","en":"The note asks for nature and effects, rates used, process and risks, not an itemised detail (IAS 21, para. 57A).","es":""}}],"id":"p3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000114","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.EXCHANGE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NOTE_PROFIT_OR_LOSS_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":55,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-differences"},"references":["IAS 21 §52"],"exercise":{"prompt":{"fr":"","en":"What must the note disclose for exchange differences recognised in profit or loss?","es":""},"explanation":{"fr":"","en":"Rule to remember: the note discloses the amount of exchange differences in profit or loss, excluding instruments at fair value through profit or loss under IFRS 9 (IAS 21, para. 52).","es":""},"common_error":{"fr":"","en":"Including fair-value-through-profit-or-loss instruments without distinction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Their amount, excluding fair-value-through-profit-or-loss instruments","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Their amount, including that of instruments at fair value through profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"Instruments at fair value through profit or loss under IFRS 9 are excluded from the amount (IAS 21, para. 52).","es":""}},{"id":"C","text":{"fr":"","en":"The amount of settlement differences, not retranslation differences","es":""},"correct":false,"feedback":{"fr":"","en":"The amount concerns exchange differences recognised in profit or loss, from settlement as from retranslation (IAS 21, para. 52).","es":""}},{"id":"D","text":{"fr":"","en":"Their nature, without an indication of amount","es":""},"correct":false,"feedback":{"fr":"","en":"The note requires an amount (IAS 21, para. 52).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000115","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.EXCHANGE_DIFFERENCES","IAS21.INTERACTIONS.IFRS9"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"FVTPL_EXCLUDED_FALSE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-differences"},"references":["IAS 21 §52"],"exercise":{"prompt":{"fr":"","en":"The exchange differences of instruments measured at fair value through profit or loss under IFRS 9 are included in the amount of differences in profit or loss that the note discloses.","es":""},"explanation":{"fr":"","en":"Rule to remember: these differences are excluded from the amount of exchange differences in profit or loss to disclose (IAS 21, para. 52).","es":""},"common_error":{"fr":"","en":"Omitting the exclusion of fair-value-through-profit-or-loss instruments.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000116","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.EXCHANGE_DIFFERENCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"RESERVE_RECONCILIATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"numeric-reconciliation"},"references":["IAS 21 §52"],"exercise":{"prompt":{"fr":"","en":"A group's translation reserve is €56,000 at the opening. Translation differences of the year in other comprehensive income are €14,000 and €9,000 is reclassified to profit or loss on disposal of an operation (reducing the reserve). Calculate the closing balance to present in the reconciliation.","es":""},"explanation":{"fr":"","en":"56,000 + 14,000 − 9,000 = €61,000. Rule to remember: the note reconciles the opening and closing balance of the equity component (IAS 21, para. 52).","es":""},"common_error":{"fr":"","en":"Adding the reclassification instead of deducting it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening balance","es":""},"value":"56000","unit":"EUR"},{"label":{"fr":"","en":"Differences of the year","es":""},"value":"14000","unit":"EUR"},{"label":{"fr":"","en":"Reclassification on disposal","es":""},"value":"9000","unit":"EUR"}],"steps":[{"id":"close","label":{"fr":"","en":"Closing balance","es":""},"answer":61000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"close","meaning":{"fr":"","en":"Closing balance","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening balance","es":""},"value":56000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Differences of the year","es":""},"value":14000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Reclassification on disposal","es":""},"value":9000,"unit":"EUR"}],"result":61000,"unit":"EUR"}],"rationale":{"fr":"","en":"the note reconciles the opening and closing balance of the equity component (IAS 21, para. 52).","es":""},"references":["REF.IAS21.52"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000117","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TAX.EFFECTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"TAX_ON_TRANSLATION_CALC","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-tax"},"references":["IAS 21 §50"],"exercise":{"prompt":{"fr":"","en":"A translation difference of €18,000 is carried to other comprehensive income. The applicable tax rate is 30% (case data); the existence of a tax is assumed established under IAS 12. Calculate the tax effect.","es":""},"explanation":{"fr":"","en":"18,000 × 30% = €5,400. Case convention: the rate is case data; deferred tax belongs to IAS 12. Rule to remember: the tax effects of exchange and translation differences are dealt with under IAS 12 (IAS 21, para. 50).","es":""},"common_error":{"fr":"","en":"Computing tax on the amount net of tax or forgetting the rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Translation difference","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (case data)","es":""},"value":"30","unit":"%"}],"steps":[{"id":"tax","label":{"fr":"","en":"Tax effect","es":""},"answer":5400,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"tax","meaning":{"fr":"","en":"Tax effect","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Translation difference","es":""},"value":18000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The applicable tax rate is 30%","es":""},"value":30,"unit":"PERCENT"}],"result":5400,"unit":"EUR"}],"rationale":{"fr":"","en":"the tax effects of exchange and translation differences are dealt with under IAS 12 (IAS 21, para. 50).","es":""},"references":["REF.IAS21.50"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000118","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TAX.EFFECTS","IAS21.INTERACTIONS.IAS12"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"GENERIC","tested_point":"TAX_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-tax"},"references":["IAS 21 §50"],"exercise":{"prompt":{"fr":"","en":"The tax effect (deferred tax liability) on a translation difference carried to other comprehensive income is €5,400. Record the entry.","es":""},"explanation":{"fr":"","en":"Debit translation reserve 5,400; credit deferred tax liability 5,400: tax follows the difference in other comprehensive income. Rule to remember: tax effects are dealt with under IAS 12 (IAS 21, para. 50).","es":""},"common_error":{"fr":"","en":"Carrying the tax expense to profit or loss while the difference is in other comprehensive income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"res","text":{"fr":"","en":"Translation reserve (other comprehensive income)","es":""}},{"id":"dtl","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"tax","text":{"fr":"","en":"Tax expense (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"res","side":"DEBIT","amount":5400,"given":["account","side"]},{"id":"l2","account":"dtl","side":"CREDIT","amount":5400,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000119","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.INTERACTIONS.IFRS9","IAS21.INTERACTIONS.IAS12"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"BOUNDARIES_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"pitfalls"},"references":["IAS 21 §4","IAS 21 §5","IAS 21 §50","IAS 21 §7"],"exercise":{"prompt":{"fr":"","en":"Match each topic with the corresponding standard or treatment.","es":""},"explanation":{"fr":"","en":"Rule to remember: hedging: IFRS 9 (IAS 21, para. 5); tax: IAS 12 (IAS 21, para. 50); cash flows: IAS 7 (IAS 21, para. 7); IFRS 9 derivatives: excluded from IAS 21 (IAS 21, para. 4).","es":""},"common_error":{"fr":"","en":"Looking in IAS 21 for the tax, hedging or cash flow rule.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Hedge accounting of a net investment","es":""}},{"id":"l2","text":{"fr":"","en":"Tax effects of translation differences","es":""}},{"id":"l3","text":{"fr":"","en":"Presentation of foreign currency cash flows","es":""}},{"id":"l4","text":{"fr":"","en":"Foreign currency derivative within IFRS 9","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"IAS 7","es":""}},{"id":"r4","text":{"fr":"","en":"Excluded from the scope of IAS 21","es":""}},{"id":"r1","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"r2","text":{"fr":"","en":"IAS 12","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000120","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.CHANGE_FUNCTIONAL_CURRENCY"],"dimension":"DOCUMENTATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CHANGE_DISCLOSURE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-change-disclosure"},"references":["IAS 21 §54"],"exercise":{"prompt":{"fr":"","en":"The functional currency of a significant foreign operation changed during the year. What must the entity disclose in the notes?","es":""},"explanation":{"fr":"","en":"Rule to remember: on a change of functional currency, the entity discloses that fact and the reason for the change (IAS 21, para. 54).","es":""},"common_error":{"fr":"","en":"Omitting the reason or the disclosure itself.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The new closing rate applied to the operation","es":""},"correct":false,"feedback":{"fr":"","en":"The note concerns the fact of the change and its reason, not just the rate used (IAS 21, para. 54).","es":""}},{"id":"B","text":{"fr":"","en":"Nothing, since a change of functional currency is an internal matter","es":""},"correct":false,"feedback":{"fr":"","en":"Such a change gives rise to a note disclosure (IAS 21, para. 54).","es":""}},{"id":"C","text":{"fr":"","en":"The reason, the date of the change being already known to the reader","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure covers the fact and the reason; the reader cannot be presumed to know it (IAS 21, para. 54).","es":""}},{"id":"D","text":{"fr":"","en":"That fact and the reason for the change","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000121","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.CONVENIENCE_TRANSLATION"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"GENERIC","tested_point":"CONVENIENCE_STATEMENTS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-convenience"},"references":["IAS 21 §55","IAS 21 §56","IAS 21 §57"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Rule to remember: a convenience translation does not comply with IAS 21: its items are presented as supplementary information, with the currencies and the method (IAS 21, paras. 55 to 57).","es":""},"common_error":{"fr":"","en":"Presenting a convenience translation as the translation of the standard.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"A convenience translation into another currency complies with IAS 21 as soon as it is published in the financial statements.","es":""},"erroneous":true,"correction":{"fr":"","en":"Such a translation does not comply with IAS 21; it is not enough to claim compliance with IFRS (IAS 21, paras. 55 to 57).","es":""}},{"id":"e2","text":{"fr":"","en":"The items thus translated are presented as supplementary information, stating the presentation currency, the functional currency and the translation method.","es":""},"erroneous":false},{"id":"e3","text":{"fr":"","en":"No mention of the translation method is useful for a convenience translation.","es":""},"erroneous":true,"correction":{"fr":"","en":"The translation method is among the mentions to state (IAS 21, paras. 55 to 57).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000122","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.TAX.EFFECTS","IAS21.INTERACTIONS.IAS12"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHERE_IS_TAX_RULE","difficulty":"INTERMEDIATE","estimated_time_s":55,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-tax"},"references":["IAS 21 §50"],"exercise":{"prompt":{"fr":"","en":"Where is the deferred tax rule applicable to a translation difference of a foreign operation found?","es":""},"explanation":{"fr":"","en":"Rule to remember: the tax effects of exchange and translation differences are dealt with under IAS 12 (IAS 21, para. 50).","es":""},"common_error":{"fr":"","en":"Looking for the tax rule in IAS 21 itself.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In IAS 21 itself, in the paragraph on the translation reserve","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 contains no deferred tax rule; it refers to the tax standard (IAS 21, para. 50).","es":""}},{"id":"B","text":{"fr":"","en":"In IAS 12, to which IAS 21 refers for tax effects","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In IFRS 9, because it concerns a foreign currency instrument","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 deals with financial instruments, not tax on translation differences (IAS 21, para. 50).","es":""}},{"id":"D","text":{"fr":"","en":"In IAS 7, with the presentation of cash flows","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 7 deals with cash flows, not tax on translation differences (IAS 21, para. 50).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000123","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.PRESENTATION_CURRENCY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PRESENTATION_VS_FUNCTIONAL_NOTE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS21.000015","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-currencies"},"references":["IAS 21 §53"],"exercise":{"prompt":{"fr":"","en":"When the presentation currency differs from the functional currency, the note states that fact, the functional currency and the reason.","es":""},"explanation":{"fr":"","en":"Rule to remember: if the presentation currency differs from the functional currency, the note states that fact, the functional currency and the reason (IAS 21, para. 53).","es":""},"common_error":{"fr":"","en":"Neglecting to state the functional currency.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000124","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.OBJECT","IAS21.SCOPE.DERIVATIVES_EXCLUSION","IAS21.SCOPE.HEDGE_ACCOUNTING_EXCLUSION","IAS21.SCOPE.CASH_FLOWS_IAS7"],"dimension":"RECOGNITION","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"SCOPE_PORTFOLIO_MINI","difficulty":"INTERMEDIATE","estimated_time_s":270,"lesson_id":"LS.IAS21.000001","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-exclusions"},"references":["IAS 21 §3","IAS 21 §4","IAS 21 §5","IAS 21 §7"],"exercise":{"prompt":{"fr":"","en":"Determine what falls under IAS 21 in Ravelle's foreign currency operations.","es":""},"explanation":{"fr":"","en":"Summary: IAS 21 for the invoice (a), the translation of the subsidiary (e), the embedded clause outside IFRS 9 (f) and the translation of the derivative amounts into the presentation currency (IAS 21, paras. 3 and 4); IFRS 9 for the stand-alone derivative (b) and the hedge of the net investment (c) (IAS 21, paras. 4 and 5); IAS 7 for the presentation of foreign currency cash flows (d) (IAS 21, para. 7).","es":""},"common_error":{"fr":"","en":"Applying a single standard to everything involving a foreign currency instead of following the boundaries of the IAS 21 scope.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Ravelle, a car parts maker whose functional currency is the euro (a fictitious entity), lists its foreign currency operations (case data): (a) a purchase invoice for parts of USD 400,000, still unpaid at the closing date; (b) a USD/EUR forward exchange contract, a stand-alone derivative within IFRS 9; (c) a sterling borrowing designated as the hedging instrument of its net investment in its UK subsidiary; (d) the presentation, in the statement of cash flows, of the payments made in dollars; (e) the translation of the accounts of the UK subsidiary, prepared in pounds, to include them by consolidation; (f) a dollar indexation clause embedded in a supply contract which, according to Ravelle's documented analysis, is not within the scope of IFRS 9.","es":""},"parts":[{"prompt":{"fr":"","en":"Classify each item by the standard that governs it.","es":""},"explanation":{"fr":"","en":"IAS 21 applies to transactions and balances in foreign currencies, except derivatives within IFRS 9, and to the translation of foreign operations included by consolidation (IAS 21, para. 3): (a) and (e). The stand-alone derivative (b) falls under IFRS 9 (IAS 21, para. 4); so does hedge accounting, including that of a net investment (c) (IAS 21, para. 5); the presentation of foreign currency cash flows (d) falls under IAS 7 (IAS 21, para. 7).","es":""},"common_error":{"fr":"","en":"Placing everything involving a foreign currency under IAS 21, including the currency derivative, the hedge and the statement of cash flows.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IAS21","text":{"fr":"","en":"IAS 21","es":""}},{"id":"IFRS9","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"IAS7","text":{"fr":"","en":"IAS 7","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"(a) The purchase invoice in dollars","es":""},"category":"IAS21"},{"id":"I2","text":{"fr":"","en":"(b) The forward exchange contract","es":""},"category":"IFRS9"},{"id":"I3","text":{"fr":"","en":"(c) The hedge of the net investment","es":""},"category":"IFRS9"},{"id":"I4","text":{"fr":"","en":"(d) The dollar payments in the statement of cash flows","es":""},"category":"IAS7"},{"id":"I5","text":{"fr":"","en":"(e) The translation of the UK subsidiary's accounts","es":""},"category":"IAS21"}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Which standard does Ravelle apply to the dollar indexation clause (f)?","es":""},"explanation":{"fr":"","en":"Currency derivatives that are not within IFRS 9, for example some derivatives embedded in other contracts, are within the scope of IAS 21 (IAS 21, para. 4). Case data: it is Ravelle's documented analysis that establishes that the clause is not within IFRS 9; that analysis belongs to IFRS 9, not to this case.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 21, since this currency derivative is not within IFRS 9","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IFRS 9, since every currency derivative is excluded from IAS 21","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion covers only the currency derivatives within IFRS 9; those that are not, such as some embedded derivatives, remain within IAS 21 (IAS 21, para. 4).","es":""}},{"id":"C","text":{"fr":"","en":"None, as the clause is part of a supply contract","es":""},"correct":false,"feedback":{"fr":"","en":"An embedded currency derivative outside IFRS 9 does not escape every standard: IAS 21 applies (IAS 21, para. 4).","es":""}}],"id":"P2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"When Ravelle translates the amounts relating to the forward exchange contract (b) into its presentation currency, it applies IAS 21.","es":""},"explanation":{"fr":"","en":"True. The derivative itself falls under IFRS 9, but IAS 21 applies when the entity translates amounts relating to derivatives from its functional currency into its presentation currency (IAS 21, para. 4).","es":""},"common_error":{"fr":"","en":"Believing that the exclusion of IFRS 9 derivatives removes IAS 21 from every step, including translation into the presentation currency.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS21.000125","source":"V2","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.CONDITIONS","IAS21.CHANGE_FUNCTIONAL.PROSPECTIVE","IAS21.CHANGE_FUNCTIONAL.TRANSLATION_AT_DATE"],"dimension":"APPLICATION","format":"MINI_CASE","context":"ENERGY","tested_point":"CHANGE_FUNCTIONAL_MINI","difficulty":"ADVANCED","estimated_time_s":330,"lesson_id":"LS.IAS21.000008","review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"rule-prospective"},"references":["IAS 21 §13","IAS 21 §35","IAS 21 §36","IAS 21 §37"],"exercise":{"prompt":{"fr":"","en":"Deal with Kestra's change of functional currency.","es":""},"explanation":{"fr":"","en":"Approach: (1) check that the underlying conditions have changed and date the change (IAS 21, para. 36); (2) at that date, translate all items at the rate of the day, non-monetary items taking that amount as historical cost (USD 880,000 for the machine); (3) apply the new currency prospectively, without restating the past; (4) leave the cumulative differences of the foreign operation in equity until its disposal (IAS 21, paras. 35 and 37).","es":""},"common_error":{"fr":"","en":"Confusing a change of functional currency with the choice of a presentation currency, or restating past periods retrospectively.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Kestra, a solar equipment trader established in France (a fictitious entity), had the euro as its functional currency. Since the beginning of N, it buys and resells almost exclusively on the US market: its sales prices are now set and settled in dollars, as are most of its costs. After a documented analysis, its management concludes that the functional currency becomes the dollar on 1 July N (case data). At that date, EUR 1 = USD 1.10. Kestra holds a machine with a carrying amount of EUR 800,000, depreciated on a straight-line basis over a remaining 8 years (case convention). It also has a branch in Canada, a foreign operation, whose cumulative translation differences in other comprehensive income amount to 45,000 at 1 July N.","es":""},"parts":[{"prompt":{"fr":"","en":"Which element justifies the change of functional currency?","es":""},"explanation":{"fr":"","en":"Once determined, the functional currency changes only if the underlying transactions, events and conditions change; a change in the currency that mainly influences sales prices may lead to it (IAS 21, paras. 13 and 36). Professional judgement: the date of 1 July N results from management’s documented analysis, case data.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The change in the underlying conditions: the dollar now mainly influences sales prices and costs","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Management's preference for presenting its accounts in dollars","es":""},"correct":false,"feedback":{"fr":"","en":"Presenting accounts in another currency is a choice of presentation currency; the functional currency changes only if the underlying transactions, events and conditions change (IAS 21, para. 36).","es":""}},{"id":"C","text":{"fr":"","en":"A single large contract denominated in dollars signed in June N","es":""},"correct":false,"feedback":{"fr":"","en":"A single transaction does not change the entity's primary economic environment: the functional currency reflects the relevant underlying transactions, events and conditions (IAS 21, paras. 13 and 36).","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the new historical cost of the machine in dollars and its depreciation charge for the second half of N.","es":""},"explanation":{"fr":"","en":"All items are translated into the new functional currency at the rate at the date of the change, and the resulting amounts for non-monetary items are treated as their historical cost (IAS 21, para. 37): 800,000 × 1.10 = USD 880,000. Depreciation, under the case convention: 880,000 / 8 × 6/12 = USD 55,000.","es":""},"common_error":{"fr":"","en":"Rebuilding the machine's original cost in dollars at the historical acquisition rates instead of translating its carrying amount at the rate on the date of the change.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount at 1 July N","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Rate at 1 July N (USD per EUR 1)","es":""},"value":"1.10","unit":"FACTOR"},{"label":{"fr":"","en":"Remaining life (case convention)","es":""},"value":"8","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"New historical cost","es":""},"answer":880000,"tolerance":0,"unit":"USD"},{"id":"S2","label":{"fr":"","en":"Depreciation from 1 July to 31 December N","es":""},"answer":55000,"tolerance":0,"unit":"USD"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"New historical cost","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at 1 July N","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate at 1 July N (USD per EUR 1)","es":""},"value":1.1,"unit":"FACTOR"}],"result":880000,"unit":"USD"},{"step":"S2","meaning":{"fr":"","en":"Depreciation from 1 July to 31 December N","es":""},"expression":"a / b * 6 / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"New historical cost","es":""},"value":880000,"unit":"USD"},{"symbol":"b","meaning":{"fr":"","en":"Remaining life (case convention)","es":""},"value":8,"unit":"YEARS"}],"result":55000,"unit":"USD"}],"rationale":{"fr":"","en":"All items are translated into the new functional currency at the rate at the date of the change, and the resulting amounts for non-monetary items are treated as their historical cost (IAS 21, para. 37): 800,000 × 1.10 = USD 880,000.","es":""},"references":["REF.IAS21.37"]}},{"prompt":{"fr":"","en":"Kestra restates its transactions of the first half of N as if the dollar had always been its functional currency.","es":""},"explanation":{"fr":"","en":"False. The translation procedures of the new functional currency are applied prospectively from the date of the change (IAS 21, para. 35); the effect of the change is accounted for prospectively (IAS 21, para. 37). The first half remains dealt with using the euro as functional currency.","es":""},"common_error":{"fr":"","en":"Treating the change of functional currency as a change in accounting policy applied retrospectively.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"What happens to the 45,000 of cumulative translation differences of the Canadian branch?","es":""},"explanation":{"fr":"","en":"Translation differences of a foreign operation previously recognised in other comprehensive income are reclassified to profit or loss only on disposal of the operation (IAS 21, para. 37): the 45,000 remain in equity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They remain in equity until the disposal of the branch","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They are reclassified to profit or loss on 1 July N","es":""},"correct":false,"feedback":{"fr":"","en":"The change of functional currency is not a disposal: differences previously recognised in other comprehensive income are reclassified only on disposal of the operation (IAS 21, para. 37).","es":""}},{"id":"C","text":{"fr":"","en":"They are recalculated from the start using the dollar as reference","es":""},"correct":false,"feedback":{"fr":"","en":"Application is prospective: differences already recognised are not recalculated (IAS 21, paras. 35 and 37).","es":""}}],"id":"P4","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000001","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000001","tested_point":"QST.IAS21.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"understand"},"references":["IAS 21 §1","IAS 21 §2"],"exercise":{"prompt":{"fr":"","en":"The standard covers both the accounting for foreign currency transactions and activities and the translation of financial statements into a presentation currency.","es":""},"explanation":{"fr":"","en":"The objective of the standard has two parts: accounting for foreign currency transactions and activities, including the rates to use and the recognition of exchange differences, and translating financial statements into a presentation currency (IAS 21, paras. 1 and 2). Trap: seeing the standard as covering only purchases and sales in foreign currency and forgetting the translation of financial statements. Rule to remember: The standard sets out how to account for foreign currency transactions and activities and how to translate financial statements into a presentation currency.","es":""},"common_error":{"fr":"","en":"Believing the standard only deals with purchases and sales in foreign currency.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000002","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.OBJECT"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS21.000001","tested_point":"VG.IAS21.000001","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-scope"},"references":["IAS 21 §3"],"exercise":{"prompt":{"fr":"","en":"Which of the following falls within the scope of IAS 21?","es":""},"explanation":{"fr":"","en":"The scope includes accounting for foreign currency transactions and balances, translating the results and financial position of foreign operations included by consolidation or the equity method, and translating into a presentation currency (IAS 21, para. 3). Trap: placing presentation translation outside the scope because no transaction is concluded in foreign currency. Rule to remember: The standard covers foreign currency transactions and balances and the translation of consolidated or equity-accounted foreign operations.","es":""},"common_error":{"fr":"","en":"Placing a presentation translation outside the scope of the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The translation of the results and financial position of a consolidated foreign subsidiary.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The calculation of current tax on the profits of the foreign subsidiary.","es":""},"correct":false,"feedback":{"fr":"","en":"Income tax of a subsidiary falls under another standard; this standard only deals with exchange rates and translation, not with determining current tax. Rule to remember: The standard covers foreign currency transactions and balances and the translation of consolidated or equity-accounted foreign operations (IAS 21, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"The classification of a lease of the subsidiary as an operating lease or as financing.","es":""},"correct":false,"feedback":{"fr":"","en":"The classification of a lease does not depend on exchange rates: it is outside this standard, which deals with the effects of rate changes and translation. Rule to remember: The standard covers foreign currency transactions and balances and the translation of consolidated or equity-accounted foreign operations (IAS 21, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"The determination of the fair value of a plot of land held by the foreign subsidiary.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of land is determined under its own standard; exchange rates only come in when translating the amount obtained. Rule to remember: The standard covers foreign currency transactions and balances and the translation of consolidated or equity-accounted foreign operations (IAS 21, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000003","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.OBJECT"],"dimension":"APPLICATION","context":"V1_VG.IAS21.000001","tested_point":"VG.IAS21.000001","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-scope"},"references":["IAS 21 §3"],"exercise":{"prompt":{"fr":"","en":"Aldric, whose accounts are in euros, consolidates a subsidiary in Switzerland whose financial statements are in Swiss francs. Aldric asks which standard to use to bring this subsidiary's statements into its consolidated accounts. What is the consistent analysis?","es":""},"explanation":{"fr":"","en":"The Swiss subsidiary is a foreign operation included by consolidation: its results and financial position, expressed in Swiss francs, are translated into the group's presentation currency, which is within the scope of the standard (IAS 21, para. 3). Trap: looking for a foreign currency transaction between parent and subsidiary when translating the statements is enough to bring in the standard. Rule to remember: Translating the results and financial position of consolidated or equity-accounted foreign operations is within the scope.","es":""},"common_error":{"fr":"","en":"Requiring a foreign currency transaction before applying the standard to a subsidiary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 21 does not apply, because the subsidiary enters into no foreign currency transaction with Aldric.","es":""},"correct":false,"feedback":{"fr":"","en":"This analysis confuses translation with a transaction: the scope also covers translating the statements of a foreign operation, even with no dealings between parent and subsidiary. Rule to remember: Translating the results and financial position of consolidated or equity-accounted foreign operations is within the scope (IAS 21, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"The subsidiary's results and financial position, included by consolidation, are translated under IAS 21.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 21 only covers purchases and sales made in foreign currency by the parent itself.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope is not limited to transactions entered into by the parent: it also covers translating foreign operations included in the consolidated accounts. Rule to remember: Translating the results and financial position of consolidated or equity-accounted foreign operations is within the scope (IAS 21, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"IAS 21 applies to an equity-accounted subsidiary, the consolidation of a subsidiary falling under IFRS 10 alone.","es":""},"correct":false,"feedback":{"fr":"","en":"Consolidation and the equity method are both within the scope; reserving the standard for one of them would leave consolidated subsidiaries out. Rule to remember: Translating the results and financial position of consolidated or equity-accounted foreign operations is within the scope (IAS 21, para. 3).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS21.000004","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.DERIVATIVES_EXCLUSION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000004","tested_point":"QST.IAS21.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-exclusions"},"references":["IAS 21 §4"],"exercise":{"prompt":{"fr":"","en":"Foreign currency derivatives are excluded from the scope of IAS 21, whichever standard they fall under.","es":""},"explanation":{"fr":"","en":"The exclusion applies to foreign currency derivatives within the scope of IFRS 9; those that are not remain in scope, and the standard applies to translating their amounts into the presentation currency (IAS 21, para. 4). Trap: excluding all foreign currency derivatives without checking which standard applies to them. Rule to remember: Only foreign currency derivatives within the scope of IFRS 9 are excluded; those that are not stay within the scope of the standard.","es":""},"common_error":{"fr":"","en":"Excluding all foreign currency derivatives from the scope without checking their treatment.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000005","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.HEDGE_ACCOUNTING_EXCLUSION"],"dimension":"ANALYSIS","context":"V1_QST.IAS21.000005","tested_point":"QST.IAS21.000005","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-exclusions"},"references":["IAS 21 §5"],"exercise":{"prompt":{"fr":"","en":"For the hedge of a net investment in a foreign subsidiary, Vexil writes in its accounting policies note: \"The hedge accounting requirements are set by IAS 21.\" What is the error?","es":""},"explanation":{"fr":"","en":"The note attributes to IAS 21 requirements that belong to IFRS 9: hedge accounting for foreign currency items, including the hedge of a net investment in a foreign operation, falls under IFRS 9 (IAS 21, para. 5). Trap: looking in the exchange rates standard for the rules of hedge accounting. Rule to remember: Hedge accounting for foreign currency items, net investment hedges included, falls under IFRS 9 and not IAS 21.","es":""},"common_error":{"fr":"","en":"Applying hedge accounting under the standard on exchange rates.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A hedge of a net investment does not exist and so cannot be designated.","es":""},"correct":false,"feedback":{"fr":"","en":"A hedge of a net investment is a recognised hedge dealt with by IFRS 9; the error is not its existence but the standard cited for its requirements. Rule to remember: Hedge accounting for foreign currency items, net investment hedges included, falls under IFRS 9 and not IAS 21 (IAS 21, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 21 reserves hedge accounting for cash flow hedges.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 does not contain the hedge accounting requirements, whatever the type of hedge: they fall under IFRS 9, cash flow hedges included. Rule to remember: Hedge accounting for foreign currency items, net investment hedges included, falls under IFRS 9 and not IAS 21 (IAS 21, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"Hedge accounting is dealt with by IFRS 9, not by IAS 21.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Hedge accounting falls under IAS 21 for subsidiaries but under IFRS 9 for branches.","es":""},"correct":false,"feedback":{"fr":"","en":"The distinction between subsidiary and branch does not change the standard that applies: hedge accounting falls under IFRS 9 in both cases. Rule to remember: Hedge accounting for foreign currency items, net investment hedges included, falls under IFRS 9 and not IAS 21 (IAS 21, para. 5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000006","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.CASH_FLOWS_IAS7"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000006","tested_point":"QST.IAS21.000006","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-exclusions"},"references":["IAS 21 §7"],"exercise":{"prompt":{"fr":"","en":"Orlane prepares its statement of cash flows and has to present the cash flows of a subsidiary that receives foreign currency. In which standard does it find the requirements for presenting these foreign currency cash flows?","es":""},"explanation":{"fr":"","en":"For cash flows in foreign currency, the standard on exchange rates refers to the standard on the statement of cash flows: their presentation falls under IAS 7 (IAS 21, para. 7). Trap: looking for the presentation of cash flows in the standard on exchange rates. Rule to remember: The presentation of cash flows in foreign currency falls under IAS 7 and not IAS 21.","es":""},"common_error":{"fr":"","en":"Looking for the presentation of cash flows in the standard on exchange rates.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 21 alone, which sets the presentation of every statement of cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 does not set the presentation of the cash flow statement: presenting cash flows in foreign currency falls under IAS 7, whose scope is the statement of cash flows. Rule to remember: The presentation of cash flows in foreign currency falls under IAS 7 and not IAS 21 (IAS 21, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 9, which deals with the presentation of cash flows from financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 deals with the recognition and measurement of financial instruments, not with presenting foreign currency cash flows, which fall under IAS 7. Rule to remember: The presentation of cash flows in foreign currency falls under IAS 7 and not IAS 21 (IAS 21, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"IAS 1 alone, which specifies the currency in which each cash flow is translated.","es":""},"correct":false,"feedback":{"fr":"","en":"The statement of cash flows has its own standard: the presentation requirements for foreign currency cash flows are found there, not in a general presentation standard. Rule to remember: The presentation of cash flows in foreign currency falls under IAS 7 and not IAS 21 (IAS 21, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"IAS 7, which deals with the presentation of cash flows in foreign currency.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000007","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000007","tested_point":"QST.IAS21.000007","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-terms"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"According to the standard, what is a foreign currency for a given entity?","es":""},"explanation":{"fr":"","en":"The definition ties a foreign currency to the functional currency: any currency other than the functional currency is a foreign currency for the entity (IAS 21, para. 8). Trap: confusing the functional currency with the presentation currency or with the currency of the company's country. Rule to remember: A foreign currency is judged against the entity's functional currency.","es":""},"common_error":{"fr":"","en":"Confusing the functional currency with the presentation currency or the currency of the company's country.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Any currency other than the entity's functional currency.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Any currency other than that of the country where the entity has its head office.","es":""},"correct":false,"feedback":{"fr":"","en":"The country of the head office does not define a foreign currency: the entity may have a functional currency different from that of its country of location, and that is the reference. Rule to remember: A foreign currency is judged against the entity's functional currency (IAS 21, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"Any currency other than the entity's presentation currency.","es":""},"correct":false,"feedback":{"fr":"","en":"The presentation currency can be chosen freely; the reference of the definition is the functional currency, not the currency in which the statements are presented. Rule to remember: A foreign currency is judged against the entity's functional currency (IAS 21, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"Any currency that is not quoted on an organised market.","es":""},"correct":false,"feedback":{"fr":"","en":"Being quoted on an organised market plays no part in the definition: a widely quoted currency can be a foreign currency, and conversely. Rule to remember: A foreign currency is judged against the entity's functional currency (IAS 21, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000008","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000008","tested_point":"QST.IAS21.000008","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":140,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-terms"},"references":["IAS 21 §20"],"exercise":{"prompt":{"fr":"","en":"An entity whose functional currency is the euro carries out several operations. Which of them are foreign currency transactions? More than one answer.","es":""},"explanation":{"fr":"","en":"A transaction is in foreign currency when it is denominated or requires settlement in a foreign currency: buying or selling at a price denominated in foreign currency, borrowing or lending in foreign currency, acquiring, disposing of, incurring or settling assets and liabilities in foreign currency (IAS 21, para. 20). Trap: calling an operation foreign because of the counterparty's nationality when price and settlement are in the functional currency. Rule to remember: A foreign currency transaction is denominated or requires settlement in a foreign currency.","es":""},"common_error":{"fr":"","en":"Calling every operation with a foreign counterparty a foreign currency transaction.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It sells goods to a foreign customer, the price being denominated and settled in euros.","es":""},"correct":false,"feedback":{"fr":"","en":"A foreign customer is not enough: the sale is denominated and settled in euros, the entity's functional currency, so it is neither denominated nor settled in a foreign currency. It must be denominated, or require settlement, in a foreign currency. Rule to remember: A foreign currency transaction is denominated or requires settlement in a foreign currency (IAS 21, para. 20).","es":""}},{"id":"B","text":{"fr":"","en":"It settles a liability denominated in Swiss francs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It buys goods whose price is denominated in dollars.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It borrows funds denominated in pounds sterling.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000009","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.SPOT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS21.000002","tested_point":"VG.IAS21.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-rates"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"The spot exchange rate is the exchange rate for immediate delivery.","es":""},"explanation":{"fr":"","en":"The spot exchange rate is defined as the rate for immediate delivery of the currency; it is the reference for recording transactions at their date (IAS 21, para. 8). Trap: confusing the spot rate with an average rate for the period or a closing rate. Rule to remember: The spot exchange rate is the rate for immediate delivery.","es":""},"common_error":{"fr":"","en":"Using the closing rate for a transaction recorded during the period.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS21.000010","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.SPOT_RATE"],"dimension":"APPLICATION","context":"V1_VG.IAS21.000002","tested_point":"VG.IAS21.000002","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-rates"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"Dalbek receives three quotations for the same currency: a rate for immediate delivery of 0.92, a rate agreed today for delivery in six months of 0.94, and the month's average rate of 0.93. Which one is the spot rate?","es":""},"explanation":{"fr":"","en":"Of the quotations, only the first relates to immediate delivery: it is the spot rate, i.e. 0.92; the six-month quotation and the monthly average meet other definitions (IAS 21, para. 8). Trap: choosing a forward rate or an average rate because it seems more representative. Rule to remember: The spot exchange rate is the rate for immediate delivery.","es":""},"common_error":{"fr":"","en":"Choosing a forward rate or an average rate as the spot rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate agreed for delivery in six months, i.e. 0.94.","es":""},"correct":false,"feedback":{"fr":"","en":"A rate agreed for delivery in six months is not a rate for immediate delivery; it is therefore not the spot rate, whatever its usefulness otherwise. Rule to remember: The spot exchange rate is the rate for immediate delivery (IAS 21, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"The rate for immediate delivery, i.e. 0.92.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The month's average rate, i.e. 0.93.","es":""},"correct":false,"feedback":{"fr":"","en":"An average rate summarises the rates of a period; it is not the rate for immediate delivery at a given moment, which defines the spot rate. Rule to remember: The spot exchange rate is the rate for immediate delivery (IAS 21, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"None of the three, a spot rate being only ever a closing rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The closing rate is a spot rate observed on a specific date, the end of the period; not every spot rate is a closing rate. Rule to remember: The spot exchange rate is the rate for immediate delivery (IAS 21, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000011","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.CLOSING_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS21.000003","tested_point":"VG.IAS21.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-rates"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"What is the closing rate?","es":""},"explanation":{"fr":"","en":"The closing rate is defined as the spot exchange rate at the end of the reporting period: it is the rate of a specific date, the closing date (IAS 21, para. 8). Trap: taking the average rate for the period as the closing rate. Rule to remember: The closing rate is the spot exchange rate at the end of the reporting period.","es":""},"common_error":{"fr":"","en":"Taking the average rate for the period as the closing rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average of the spot rates observed during the reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The average of the period is an average rate, often used as an approximation for income and expenses; it is not the closing rate, which is observed at the end of the period. Rule to remember: The closing rate is the spot exchange rate at the end of the reporting period (IAS 21, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"The spot rate on the date of the last transaction of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The date of the last transaction may be before the end of the period; the closing rate relates to the end of the reporting period, not to a transaction. Rule to remember: The closing rate is the spot exchange rate at the end of the reporting period (IAS 21, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"The spot exchange rate at the end of the reporting period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The spot rate on the first day of the following period.","es":""},"correct":false,"feedback":{"fr":"","en":"The first day of the following period is after the end of the period; the closing rate is the rate at the end of the reporting period. Rule to remember: The closing rate is the spot exchange rate at the end of the reporting period (IAS 21, para. 8).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS21.000012","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.CLOSING_RATE"],"dimension":"ANALYSIS","context":"V1_VG.IAS21.000003","tested_point":"VG.IAS21.000003","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-rates"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"In his 31 December closing file, an accountant at Merlon writes: \"Closing rate = average of the December rates = 0.91.\" The spot rate observed on 31 December is 0.94. What is the error?","es":""},"explanation":{"fr":"","en":"The accountant replaced the 31 December spot rate (0.94) with the month's average (0.91): this is not the closing rate, which is defined as the spot rate at the end of the reporting period (IAS 21, para. 8). Trap: substituting an average for the spot rate observed on the closing date. Rule to remember: The closing rate is the spot rate at the end of the reporting period, not an average.","es":""},"common_error":{"fr":"","en":"Taking the average rate for the period as the closing rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The closing rate must be the rate of the last working day of November, the previous month.","es":""},"correct":false,"feedback":{"fr":"","en":"Going back a month matches no definition: the closing rate is observed at the end of the reporting period, that is on the closing date itself. Rule to remember: The closing rate is the spot rate at the end of the reporting period, not an average (IAS 21, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"The closing rate only exists for non-monetary items, never for liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"The closing rate is not reserved for a category of items: it is defined as the spot rate at the end of the period, whatever item it is applied to. Rule to remember: The closing rate is the spot rate at the end of the reporting period, not an average (IAS 21, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"The closing rate must include the exchange fees charged by the bank.","es":""},"correct":false,"feedback":{"fr":"","en":"Exchange fees are not part of the definition: the closing rate is the spot rate at the end of the period, with no adjustment for fees. Rule to remember: The closing rate is the spot rate at the end of the reporting period, not an average (IAS 21, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"The closing rate is the spot rate at the end of the period, here 0.94, and not an average.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000013","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.EXCHANGE_DIFFERENCE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000013","tested_point":"QST.IAS21.000013","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-difference"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"An exchange difference is the finance cost representing the cost of borrowing in a foreign currency.","es":""},"explanation":{"fr":"","en":"An exchange difference arises from translating the same number of units of one currency into another currency at different exchange rates; it reflects a translation effect, not the financing cost of a debt (IAS 21, para. 8). Trap: seeing the exchange difference as a finance cost of the debt rather than a translation effect. Rule to remember: An exchange difference is the difference resulting from translating a given number of units of one currency into another currency at different exchange rates.","es":""},"common_error":{"fr":"","en":"Seeing the exchange difference as a finance cost of the debt rather than a translation effect.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000014","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.EXCHANGE_DIFFERENCE"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000014","tested_point":"QST.IAS21.000014","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-difference"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"Perrand translates 10,000 dollars at 0.90 euro on the date of a transaction, then the same 10,000 dollars at 0.93 euro at the closing date. What does the difference of 300 euros between the two translations represent?","es":""},"explanation":{"fr":"","en":"10,000 × 0.93 − 10,000 × 0.90 = 9,300 − 9,000 = 300: the quantity of dollars is the same, only the rate changes; the difference is an exchange difference (IAS 21, para. 8). Trap: looking for a financial cause, such as interest or a commission, when only the rate changes. Rule to remember: An exchange difference results from translating the same number of units of a currency at different rates.","es":""},"common_error":{"fr":"","en":"Attributing the difference to interest or a commission rather than to the change in rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An exchange difference: the same quantity of dollars translated at two different rates.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Interest accrued on the dollar receivable between the two dates.","es":""},"correct":false,"feedback":{"fr":"","en":"No interest rate is involved: the number of dollars is the same on both dates and only the rate changes, which is what characterises an exchange difference. Rule to remember: An exchange difference results from translating the same number of units of a currency at different rates (IAS 21, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"A change in the number of dollars held between the two dates.","es":""},"correct":false,"feedback":{"fr":"","en":"The number of dollars stays 10,000 on both dates; the difference comes only from the rate applied, not from a change in quantity. Rule to remember: An exchange difference results from translating the same number of units of a currency at different rates (IAS 21, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"An exchange commission charged by the bank on translation.","es":""},"correct":false,"feedback":{"fr":"","en":"No commission is mentioned in the case; the difference results from two rates applied to the same quantity of dollars, i.e. an exchange difference. Rule to remember: An exchange difference results from translating the same number of units of a currency at different rates (IAS 21, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000015","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.MONETARY_ITEMS"],"dimension":"ANALYSIS","context":"V1_QST.IAS21.000015","tested_point":"QST.IAS21.000015","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000002","section_id":"rule-monetary"},"references":["IAS 21 §16"],"exercise":{"prompt":{"fr":"","en":"Tarvin paid a foreign supplier an advance of 20,000 dollars for the delivery of a machine. Its accountant writes: \"This advance is a monetary item, so it will be translated at the closing rate.\" What is the error?","es":""},"explanation":{"fr":"","en":"The essential feature of a monetary item is a right to receive, or an obligation to deliver, a fixed or determinable number of units of currency; a non-monetary item is characterised by the absence of such a right or obligation, as with an advance giving a right to an asset (IAS 21, para. 16). Trap: classifying an advance paid for an asset as a monetary item because it was paid in cash. Rule to remember: An item is monetary if it gives a right to receive, or an obligation to deliver, a fixed or determinable number of units of currency.","es":""},"common_error":{"fr":"","en":"Classifying an advance paid for an asset as a monetary item.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An advance is a non-monetary item whatever the nature of what is received in return, including where it is received in cash.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is too general: it is the nature of the right that matters. Here the right is to an asset; an advance whose return would be a fixed number of units of currency would be judged differently. Rule to remember: An item is monetary if it gives a right to receive, or an obligation to deliver, a fixed or determinable number of units of currency (IAS 21, para. 16).","es":""}},{"id":"B","text":{"fr":"","en":"An advance giving a right to an asset, and not to fixed or determinable units of currency, is not a monetary item.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A monetary item is translated at the historical rate of the transaction date, which avoids recognising a difference.","es":""},"correct":false,"feedback":{"fr":"","en":"Monetary items are translated at the closing rate: the accountant is right on that consequence, the error lies in classifying the advance, not in the rate applied. Rule to remember: An item is monetary if it gives a right to receive, or an obligation to deliver, a fixed or determinable number of units of currency (IAS 21, para. 16).","es":""}},{"id":"D","text":{"fr":"","en":"An advance in dollars is not a monetary item because the dollar is a foreign currency.","es":""},"correct":false,"feedback":{"fr":"","en":"The foreign currency is not the criterion: an item in foreign currency may be monetary or not, depending on whether it gives a right to a fixed or determinable number of units of currency. Rule to remember: An item is monetary if it gives a right to receive, or an obligation to deliver, a fixed or determinable number of units of currency (IAS 21, para. 16).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000017","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.FOREIGN_OPERATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000017","tested_point":"QST.IAS21.000017","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-terms"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"Which entity meets the definition of a foreign operation?","es":""},"explanation":{"fr":"","en":"The definition covers a subsidiary, associate, joint arrangement or branch of the reporting entity whose activities are based or conducted in a country or currency other than those of the reporting entity (IAS 21, para. 8). Trap: defining a foreign operation merely by dealing with foreigners. Rule to remember: A foreign operation is a subsidiary, associate, joint arrangement or branch whose activities are based or conducted in another country or currency.","es":""},"common_error":{"fr":"","en":"Defining a foreign operation by its geographical location alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A group entity that publishes its accounts in a language different from the parent's, for example in Spanish for a French group.","es":""},"correct":false,"feedback":{"fr":"","en":"The language of the accounts is not a criterion: the definition covers activities based or conducted in a different country or currency, within a subsidiary, associate, joint arrangement or branch. Rule to remember: A foreign operation is a subsidiary, associate, joint arrangement or branch whose activities are based or conducted in another country or currency (IAS 21, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"A supplier established outside the reporting entity's country, which regularly delivers goods to it and invoices its sales in a currency other than the entity's.","es":""},"correct":false,"feedback":{"fr":"","en":"A supplier is a third party, not a group entity: the definition covers a subsidiary, associate, joint arrangement or branch of the reporting entity. Rule to remember: A foreign operation is a subsidiary, associate, joint arrangement or branch whose activities are based or conducted in another country or currency (IAS 21, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"A subsidiary, associate, joint arrangement or branch whose activities are based or conducted in a country or currency other than the entity's.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A foreign customer of the reporting entity that pays for its purchases in foreign currency, even if it has no legal link with the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"A customer is a third party, even a foreign one: the definition covers entities tied to the reporting entity through an interest or a branch, not its trading counterparties. Rule to remember: A foreign operation is a subsidiary, associate, joint arrangement or branch whose activities are based or conducted in another country or currency (IAS 21, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000018","standard_id":"IAS21","concept_ids":["IAS21.DEFINITIONS.FOREIGN_OPERATION"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000018","tested_point":"QST.IAS21.000018","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-terms"},"references":["IAS 21 §8"],"exercise":{"prompt":{"fr":"","en":"Brenne, established in France and presenting its accounts in euros, holds a subsidiary also located in France, but whose activities are conducted in dollars with American customers. Is this subsidiary a foreign operation?","es":""},"explanation":{"fr":"","en":"The subsidiary's activities are conducted in dollars, a currency other than the reporting entity's euro: the definition, which refers to another country or currency, is met despite a location in the same country (IAS 21, para. 8). Trap: reducing a foreign operation to its geographical location alone. Rule to remember: The definition covers activities based or conducted in another country or currency, location not being the only criterion.","es":""},"common_error":{"fr":"","en":"Defining a foreign operation by its geographical location alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: a subsidiary located in the same country as its parent is not a foreign operation, the currency of its activities mattering little.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition refers to another country or currency; geographical location is therefore not the only criterion, and activities conducted in another currency may be enough. Rule to remember: The definition covers activities based or conducted in another country or currency, location not being the only criterion (IAS 21, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"No: the notion of foreign operation mainly targets branches, not subsidiaries.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition includes subsidiaries as well as branches, associates and joint arrangements; limiting the notion to branches wrongly narrows its meaning. Rule to remember: The definition covers activities based or conducted in another country or currency, location not being the only criterion (IAS 21, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, provided that the subsidiary is consolidated under the full consolidation method.","es":""},"correct":false,"feedback":{"fr":"","en":"The way the entity is brought in, consolidation or the equity method, does not condition the definition: both cover foreign operations. Rule to remember: The definition covers activities based or conducted in another country or currency, location not being the only criterion (IAS 21, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"Yes: its activities are conducted in a currency other than that of the reporting entity, although it is in the same country.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000019","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.PRIMARY_INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS21.000004","tested_point":"VG.IAS21.000004","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-primary"},"references":["IAS 21 §9"],"exercise":{"prompt":{"fr":"","en":"Which of these is a primary indicator of the functional currency, to be considered first?","es":""},"explanation":{"fr":"","en":"The primary indicators are the currency that mainly influences selling prices, that of the country whose competitive forces and regulations determine prices, and that which mainly influences costs; financing and receipts are additional factors considered afterwards (IAS 21, paras. 9 and 10). Trap: putting the primary indicators and the additional financing factors on the same footing. Rule to remember: The primary indicators, considered first, are the currency influencing selling prices, that of the country whose competition and regulation set prices, and that influencing costs.","es":""},"common_error":{"fr":"","en":"Applying a single indicator in isolation, or ranking financing ahead of prices and costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The currency that mainly influences labour, material and other production costs.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The currency in which funds from financing activities are generally generated by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Funds from financing are an additional factor, which provides supporting evidence and is considered after the primary indicators, not first. Rule to remember: The primary indicators, considered first, are the currency influencing selling prices, that of the country whose competition and regulation set prices, and that influencing costs (IAS 21, paras. 9 and 10).","es":""}},{"id":"C","text":{"fr":"","en":"The currency in which receipts from operating activities are generally retained by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Operating receipts retained in a currency are also an additional factor, considered after the primary indicators. Rule to remember: The primary indicators, considered first, are the currency influencing selling prices, that of the country whose competition and regulation set prices, and that influencing costs (IAS 21, paras. 9 and 10).","es":""}},{"id":"D","text":{"fr":"","en":"The currency in which the entity's management wants the group's performance to be monitored.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's wish is not an indicator in the standard: the primary indicators concern selling prices and costs, not a monitoring preference. Rule to remember: The primary indicators, considered first, are the currency influencing selling prices, that of the country whose competition and regulation set prices, and that influencing costs (IAS 21, paras. 9 and 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000020","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.PRIMARY_INDICATORS"],"dimension":"APPLICATION","context":"V1_VG.IAS21.000004","tested_point":"VG.IAS21.000004","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-primary"},"references":["IAS 21 §9"],"exercise":{"prompt":{"fr":"","en":"Nordelle, established in the euro area, sells its products on the Swiss market where local competition and regulation determine the prices, denominated in Swiss francs. Its production costs are also mainly in Swiss francs. Where does management begin its analysis of the functional currency?","es":""},"explanation":{"fr":"","en":"The primary indicators, considered first, concern selling prices, competition and regulation, and costs: here they converge on the Swiss franc. Case convention: no other element is provided, so the analysis goes no further (IAS 21, para. 9). Trap: starting from the head-office country, the presentation currency or the financing rather than prices and costs. Rule to remember: The analysis starts with the primary indicators; the other factors come in support, after them.","es":""},"common_error":{"fr":"","en":"Starting from the head-office country's currency or the financing before looking at selling prices and costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"With the currency of the country of the head office, because the entity is established there and it is its shareholders' currency.","es":""},"correct":false,"feedback":{"fr":"","en":"The country of the head office is not an indicator in the standard; selling prices, competition and regulation, and costs are what guide the analysis first. Rule to remember: The analysis starts with the primary indicators; the other factors come in support, after them (IAS 21, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"With the primary indicators (selling prices, competition, regulation, costs), which here designate the Swiss franc.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"With the presentation currency wanted by the shareholders, which automatically sets the entity's functional currency.","es":""},"correct":false,"feedback":{"fr":"","en":"The presentation currency does not determine the functional currency: the analysis starts from the primary indicators, not from a shareholder preference. Rule to remember: The analysis starts with the primary indicators; the other factors come in support, after them (IAS 21, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"With the currency of the entity's borrowings, which takes priority over selling prices and costs.","es":""},"correct":false,"feedback":{"fr":"","en":"The currency of borrowings is among the additional factors, considered after the primary indicators; it does not take priority over selling prices and costs. Rule to remember: The analysis starts with the primary indicators; the other factors come in support, after them (IAS 21, para. 9).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS21.000021","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.SECONDARY_INDICATORS"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000021","tested_point":"QST.IAS21.000021","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-secondary"},"references":["IAS 21 §10","IAS 21 §11"],"exercise":{"prompt":{"fr":"","en":"For Garnet, the primary indicators do not allow a conclusion. Its borrowings are issued in pounds sterling and its operating receipts are generally retained in pounds sterling. How should management use these two items?","es":""},"explanation":{"fr":"","en":"The currency in which financing funds are generated and that in which operating receipts are generally retained are additional factors, which give supporting evidence after the primary indicators. Professional judgement: their weight is a matter for management's assessment (IAS 21, paras. 10 and 11). Trap: forgetting the additional factors when the primary indicators are inconclusive, or giving them an automatic decisive weight. Rule to remember: Additional factors provide supporting evidence, considered after the primary indicators, with no threshold imposed.","es":""},"common_error":{"fr":"","en":"Forgetting the secondary indicators when the primary indicators are inconclusive.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As indicators that replace the primary indicators, which are then set aside in the analysis of the functional currency.","es":""},"correct":false,"feedback":{"fr":"","en":"Additional factors are added to the primary indicators and do not replace them: they come in support when the latter are not enough. Rule to remember: Additional factors provide supporting evidence, considered after the primary indicators, with no threshold imposed (IAS 21, paras. 10 and 11).","es":""}},{"id":"B","text":{"fr":"","en":"As criteria with no real weight, the standard relying mainly on selling prices and costs.","es":""},"correct":false,"feedback":{"fr":"","en":"They are not without weight: the standard provides additional factors, including financing and receipts, to support the analysis after the primary indicators. Rule to remember: Additional factors provide supporting evidence, considered after the primary indicators, with no threshold imposed (IAS 21, paras. 10 and 11).","es":""}},{"id":"C","text":{"fr":"","en":"As supporting evidence, considered after the primary indicators, which may point to pounds sterling.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As a numerical rule: the currency of most of the borrowings is in principle the functional currency.","es":""},"correct":false,"feedback":{"fr":"","en":"No threshold is imposed by the standard: these factors are matters of assessment, and the currency of borrowings alone does not determine the functional currency. Rule to remember: Additional factors provide supporting evidence, considered after the primary indicators, with no threshold imposed (IAS 21, paras. 10 and 11).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000023","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.FOREIGN_OPERATION_INDICATORS"],"dimension":"ANALYSIS","context":"V1_QST.IAS21.000023","tested_point":"QST.IAS21.000023","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-foreign-op"},"references":["IAS 21 §11"],"exercise":{"prompt":{"fr":"","en":"The Calvet group holds a foreign subsidiary. The finance director writes: \"The parent has the franc as functional currency, so the subsidiary necessarily has the franc as functional currency.\" The subsidiary has its own financing, enters into few transactions with the parent and its cash flows do not affect those of the parent. What is the error?","es":""},"explanation":{"fr":"","en":"The functional currency of the foreign operation may be that of the reporting entity or another, depending on autonomy, the share of transactions with the entity, the effect on the entity's cash flows and financing; here the facts (own financing, few dealings with the parent, no effect on cash flows) call for a separate analysis (IAS 21, para. 11). Trap: deducing a subsidiary's functional currency from its parent's without analysing autonomy. Rule to remember: The functional currency of a foreign operation may be that of the reporting entity or another, depending on the analysis of its autonomy, transactions, cash flows and financing.","es":""},"common_error":{"fr":"","en":"Deducing a subsidiary's functional currency from its parent's without analysing autonomy.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A subsidiary cannot have the same functional currency as its parent, whatever its autonomy and its financing.","es":""},"correct":false,"feedback":{"fr":"","en":"A subsidiary can have the same functional currency as its parent: everything depends on the analysis of autonomy, transactions, cash flows and financing, not on a blanket prohibition. Rule to remember: The functional currency of a foreign operation may be that of the reporting entity or another, depending on the analysis of its autonomy, transactions, cash flows and financing (IAS 21, para. 11).","es":""}},{"id":"B","text":{"fr":"","en":"The subsidiary's functional currency must be the currency of the country where it is located, with no further analysis of its activities or its financing.","es":""},"correct":false,"feedback":{"fr":"","en":"Being located in a country does not settle the question: the standard asks for an analysis of autonomy, the share of transactions with the parent, the effect on its cash flows and financing. Rule to remember: The functional currency of a foreign operation may be that of the reporting entity or another, depending on the analysis of its autonomy, transactions, cash flows and financing (IAS 21, para. 11).","es":""}},{"id":"C","text":{"fr":"","en":"The subsidiary's functional currency must be decided by the parent, according to its consolidation needs, regardless of the facts.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is not a decision of the parent: the functional currency results from the analysis of the facts specific to the foreign operation. Professional judgement: this analysis must be supported. Rule to remember: The functional currency of a foreign operation may be that of the reporting entity or another, depending on the analysis of its autonomy, transactions, cash flows and financing (IAS 21, para. 11).","es":""}},{"id":"D","text":{"fr":"","en":"The subsidiary's functional currency is judged on its autonomy, its dealings with the parent, cash flows and financing, not by deduction.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000024","standard_id":"IAS21","concept_ids":["IAS21.FUNCTIONAL.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000024","tested_point":"QST.IAS21.000024","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000003","section_id":"rule-determination"},"references":["IAS 21 §17"],"exercise":{"prompt":{"fr":"","en":"An entity freely chooses its functional currency, without having to follow the indicators set out in the standard.","es":""},"explanation":{"fr":"","en":"The functional currency is not a free choice: it is determined by following the indicators listed in the standard, an approach every entity applies (IAS 21, para. 17). Trap: choosing the functional currency freely, as one chooses the presentation currency. Rule to remember: The functional currency is determined by following the standard's indicators.","es":""},"common_error":{"fr":"","en":"Choosing the functional currency freely, as one chooses the presentation currency.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000026","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.INITIAL_RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000026","tested_point":"QST.IAS21.000026","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-initial"},"references":["IAS 21 §21"],"exercise":{"prompt":{"fr":"","en":"A foreign currency transaction is initially recorded at the closing rate of the period, whatever the date of the transaction.","es":""},"explanation":{"fr":"","en":"On initial recognition, the entity applies the spot exchange rate between its functional currency and the foreign currency at the date of the transaction; the closing rate comes in later, for balances still open (IAS 21, para. 21). Trap: translating at the average or closing rate instead of the spot rate at the date of the transaction. Rule to remember: A foreign currency transaction is recorded at the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.","es":""},"common_error":{"fr":"","en":"Translating at the average or closing rate instead of the spot rate at the date of the transaction.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000027","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.INITIAL_RECOGNITION"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000027","tested_point":"QST.IAS21.000027","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-initial"},"references":["IAS 21 §21"],"exercise":{"prompt":{"fr":"","en":"Aldric, whose functional currency is the euro, buys goods invoiced at {foreign_amount}. The spot rate at the date of the transaction is 0.92 euro per 1 dollar. Calculate the amount to record in euros.","es":""},"explanation":{"fr":"","en":"Approach: 25,000 × 0.92 = 23,000: the price in dollars is multiplied by the spot rate at the date of the transaction, expressed in euros per 1 dollar (IAS 21, para. 21). Trap: applying a closing rate or an average rate instead of the rate at the date of the transaction. Rule to remember: The initial amount in functional currency is the foreign currency amount multiplied by the spot rate at the date of the transaction.","es":""},"common_error":{"fr":"","en":"Using a rate from a date other than that of the transaction.","es":""},"format":"CALCULATION","placeholders":[{"id":"foreign_amount","value":"25000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Purchase price in dollars","es":""},"value":"25000","unit":"USD"}],"steps":[{"id":"FUNCTIONAL_AMOUNT","label":{"fr":"","en":"Amount recorded in euros","es":""},"answer":23000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"FUNCTIONAL_AMOUNT","meaning":{"fr":"","en":"Amount recorded in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchase price in dollars","es":""},"value":25000,"unit":"USD"},{"symbol":"b","meaning":{"fr":"","en":"The spot rate at the date of the transaction is 0.92 euro","es":""},"value":0.92}],"result":23000,"unit":"EUR","rationale":{"fr":"","en":"Approach: 25,000 × 0.92 = 23,000: the price in dollars is multiplied by the spot rate at the date of the transaction, expressed in euros per 1 dollar (IAS 21, para. 21).","es":""}}],"rationale":{"fr":"","en":"The initial amount in functional currency is the foreign currency amount multiplied by the spot rate at the date of the transaction.","es":""},"references":["REF.IAS21.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000029","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.SPOT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000029","tested_point":"QST.IAS21.000029","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-initial"},"references":["IAS 21 §21"],"exercise":{"prompt":{"fr":"","en":"On 12 March, Lorien, whose functional currency is the euro, sells goods invoiced in dollars. Which rate does it use to record the sale?","es":""},"explanation":{"fr":"","en":"For a foreign currency transaction, initial recognition uses the spot rate between the functional currency and the foreign currency at the date of the transaction, here 12 March (IAS 21, para. 21). Trap: using the closing rate or an average rate for a transaction recorded during the period. Rule to remember: Initial recognition uses the spot rate at the date of the transaction.","es":""},"common_error":{"fr":"","en":"Using a closing rate or an average rate for a sale recorded during the period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The closing rate of 31 December of the previous year, which serves as the reference for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"An earlier closing rate is not the rate at the date of the transaction; the standard asks for the spot rate at the date of the sale, i.e. 12 March. Rule to remember: Initial recognition uses the spot rate at the date of the transaction (IAS 21, para. 21).","es":""}},{"id":"B","text":{"fr":"","en":"The spot rate of 12 March between the euro and the dollar.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The rate of the expected settlement date, which is still unknown at the date of the sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate at the settlement date is unknown at the date of the sale and is not the one the standard provides for initial recognition, which relates to the transaction date. Rule to remember: Initial recognition uses the spot rate at the date of the transaction (IAS 21, para. 21).","es":""}},{"id":"D","text":{"fr":"","en":"The average annual rate of the year, applied to the year's sales.","es":""},"correct":false,"feedback":{"fr":"","en":"An average annual rate does not correspond to the date of this sale; the standard uses the spot rate at the date of the transaction for initial recognition. Rule to remember: Initial recognition uses the spot rate at the date of the transaction (IAS 21, para. 21).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000030","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.SPOT_RATE"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000030","tested_point":"QST.IAS21.000030","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-initial"},"references":["IAS 21 §21"],"exercise":{"prompt":{"fr":"","en":"Maurin, whose functional currency is the euro, sells goods invoiced at {foreign_amount}. The spot rate at the date of the transaction is quoted as: 1 euro = 1.25 dollars. Calculate the amount to record in euros.","es":""},"explanation":{"fr":"","en":"Approach: The rate is quoted in dollars per 1 euro: 1 euro = 1.25 dollars, so 1 dollar = 1 / 1.25 = 0.80 euro; 50,000 / 1.25 = 40,000 (IAS 21, para. 21). Trap: multiplying by 1.25 as if the rate were quoted in euros per 1 dollar. Rule to remember: The spot rate of the transaction date applies; depending on the direction of the quotation, the foreign currency amount is multiplied or divided.","es":""},"common_error":{"fr":"","en":"Dividing by the rate instead of multiplying, or the reverse, without checking the direction of the quotation.","es":""},"format":"CALCULATION","placeholders":[{"id":"foreign_amount","value":"50000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Selling price in dollars","es":""},"value":"50000","unit":"USD"}],"steps":[{"id":"FUNCTIONAL_AMOUNT","label":{"fr":"","en":"Amount recorded in euros","es":""},"answer":40000,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000032","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.TRANSACTION_DATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000032","tested_point":"QST.IAS21.000032","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-date"},"references":["IAS 21 §22"],"exercise":{"prompt":{"fr":"","en":"The date of the transaction is the date on which it first qualifies for recognition.","es":""},"explanation":{"fr":"","en":"The date of the transaction, which is used to choose the spot rate, is the date on which the transaction first qualifies for recognition (IAS 21, para. 22). Trap: using the invoice date or the payment date without checking when the transaction qualifies for recognition. Rule to remember: The date of the transaction is the date on which the transaction first qualifies for recognition.","es":""},"common_error":{"fr":"","en":"Using the invoice date or the payment date without considering recognition.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000033","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.TRANSACTION_DATE"],"dimension":"ANALYSIS","context":"V1_QST.IAS21.000033","tested_point":"QST.IAS21.000033","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-date"},"references":["IAS 21 §22"],"exercise":{"prompt":{"fr":"","en":"Evrard orders goods in dollars on 5 April; it receives them and obtains control of them on 20 April, the invoice is issued on 28 April and payment takes place on 15 May. Its accounting policy note states: \"The date of the transaction is the payment date.\" What is the error?","es":""},"explanation":{"fr":"","en":"The recognition conditions are first met when the goods are received: 20 April. Case convention: receipt transfers control. Payment on 15 May comes later and is not the date of the transaction (IAS 21, para. 22). Trap: using the invoice date or the payment date without considering recognition. Rule to remember: The date of the transaction is the date on which the transaction first qualifies for recognition.","es":""},"common_error":{"fr":"","en":"Using the invoice date or the payment date without considering recognition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The date of the transaction is the order date, because it fixes the price in dollars and binds both parties to the exchange of the goods.","es":""},"correct":false,"feedback":{"fr":"","en":"The order alone does not meet the recognition conditions here: it is the receipt and control of the goods that make the transaction recognisable for the first time. Rule to remember: The date of the transaction is the date on which the transaction first qualifies for recognition (IAS 21, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"The date of the transaction is the invoice date, because it is the first accounting document issued and shows the exact amount in dollars.","es":""},"correct":false,"feedback":{"fr":"","en":"The invoice comes after the receipt in the case; the date used is the one on which the transaction first qualifies for recognition, not that of a document. Rule to remember: The date of the transaction is the date on which the transaction first qualifies for recognition (IAS 21, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"The date of the transaction is the date on which the recognition conditions are first met, here the receipt of the goods.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The date of the transaction is the last day of the month in which the goods are received, for convenience of the monthly closing of the accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"End-of-month convenience is not part of the definition: the date of the transaction is the date on which the recognition conditions are first met. Rule to remember: The date of the transaction is the date on which the transaction first qualifies for recognition (IAS 21, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000034","standard_id":"IAS21","concept_ids":["IAS21.TRANSACTIONS.AVERAGE_RATE_APPROX"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000034","tested_point":"QST.IAS21.000034","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-average"},"references":["IAS 21 §22"],"exercise":{"prompt":{"fr":"","en":"Thorel records sales in dollars every day. During June, the dollar rate fluctuated significantly, with large swings from one week to the next. The controller proposes to use the June average rate for all the month's sales. What is the consistent position?","es":""},"explanation":{"fr":"","en":"An average rate over a period may be used as an approximation if rates do not fluctuate significantly; it is inappropriate when they do, as in June here, and the rate at each transaction date applies. Professional judgement: no numerical threshold is imposed (IAS 21, para. 22). Trap: applying an average rate despite significant fluctuations. Rule to remember: An average rate may approximate the transaction-date rate if rates do not fluctuate significantly; it is inappropriate when they do.","es":""},"common_error":{"fr":"","en":"Applying an average rate despite significant fluctuations.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average rate remains appropriate, the standard allowing any practical approximation with no particular condition on the fluctuation of rates.","es":""},"correct":false,"feedback":{"fr":"","en":"Using an average rate is conditional: it assumes rates do not fluctuate significantly, which is not the case here. Professional judgement: fluctuation is assessed with no threshold imposed. Rule to remember: An average rate may approximate the transaction-date rate if rates do not fluctuate significantly; it is inappropriate when they do (IAS 21, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"The average rate is appropriate provided it is computed over at least fifteen days of quotations.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides no minimum quotation period: the approach rests on the assessment of fluctuation, not on a number of days. Rule to remember: An average rate may approximate the transaction-date rate if rates do not fluctuate significantly; it is inappropriate when they do (IAS 21, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"The June closing rate is more appropriate than the average rate, because it can be observed on a specific date and is easy to verify.","es":""},"correct":false,"feedback":{"fr":"","en":"The closing rate does not match the dates of the June sales; it brings rates no closer to those of the transactions than an average rate does, and the standard uses the rate of each transaction when rates fluctuate significantly. Rule to remember: An average rate may approximate the transaction-date rate if rates do not fluctuate significantly; it is inappropriate when they do (IAS 21, para. 22).","es":""}},{"id":"D","text":{"fr":"","en":"The average rate is inappropriate if rates fluctuate significantly: the rate at the date of each sale is used.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000035","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.MONETARY_CLOSING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000035","tested_point":"QST.IAS21.000035","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-monetary"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"A receivable denominated in a foreign currency remains measured at the rate of the transaction date until it is settled, without being translated at the closing date.","es":""},"explanation":{"fr":"","en":"At each reporting date, monetary items in foreign currency, such as a receivable, are translated at the closing rate; the historical rate does not apply to them (IAS 21, para. 23). Trap: keeping foreign currency receivables and payables at the historical rate. Rule to remember: At subsequent reporting dates, monetary items in foreign currency are translated at the closing rate.","es":""},"common_error":{"fr":"","en":"Keeping foreign currency receivables and payables at the historical rate.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000036","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.MONETARY_CLOSING"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000036","tested_point":"QST.IAS21.000036","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-monetary"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Quenet, whose functional currency is the euro, holds at the closing date a receivable of {foreign_amount}. The closing rate is 0.96 euro per 1 dollar. Calculate the receivable in euros at the closing date.","es":""},"explanation":{"fr":"","en":"Approach: 40,000 × 0.96 = 38,400: the receivable, a monetary item, is translated at the closing rate (IAS 21, para. 23). Trap: carrying forward the amount translated at the rate of the transaction date. Rule to remember: A monetary item in foreign currency is translated at the closing rate.","es":""},"common_error":{"fr":"","en":"Keeping the historical rate for a foreign currency receivable.","es":""},"format":"CALCULATION","placeholders":[{"id":"foreign_amount","value":"40000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Receivable in dollars","es":""},"value":"40000","unit":"USD"}],"steps":[{"id":"CLOSING_AMOUNT","label":{"fr":"","en":"Receivable translated at the closing rate in euros","es":""},"answer":38400,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_AMOUNT","meaning":{"fr":"","en":"Receivable translated at the closing rate in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Receivable in dollars","es":""},"value":40000,"unit":"USD"},{"symbol":"b","meaning":{"fr":"","en":"The closing rate is 0.96 euro","es":""},"value":0.96}],"result":38400,"unit":"EUR","rationale":{"fr":"","en":"Approach: 40,000 × 0.96 = 38,400: the receivable, a monetary item, is translated at the closing rate (IAS 21, para. 23).","es":""}}],"rationale":{"fr":"","en":"A monetary item in foreign currency is translated at the closing rate.","es":""},"references":["REF.IAS21.23"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000038","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.NONMONETARY_HISTORICAL"],"dimension":"ANALYSIS","context":"V1_QST.IAS21.000038","tested_point":"QST.IAS21.000038","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-historical"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Halden buys a machine for 45,000 dollars at the rate of 0.88 euro, i.e. 39,600 euros. At the closing date the rate is 0.93 euro; its accountant translates the machine at 41,850 euros and recognises a gain of 2,250 euros. What is the error?","es":""},"explanation":{"fr":"","en":"The machine is a non-monetary item measured at historical cost: it stays at 39,600 euros, translated at the rate of the transaction date, and retranslating it at 41,850 is an error that creates a fictitious gain of 2,250 (IAS 21, para. 23). Trap: retranslating an asset at historical cost at the closing rate. Rule to remember: A non-monetary item at historical cost stays translated at the rate of the transaction date.","es":""},"common_error":{"fr":"","en":"Retranslating an asset at historical cost at the closing rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The machine, a non-monetary item at historical cost, stays at the rate of the transaction date: no retranslation and no gain.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The machine must be retranslated at the closing rate, but the gain must then be taken directly to equity, outside profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The problem is not where the gain is taken: the machine is not retranslated at the closing date, so there is no gain, either in profit or loss or in equity. Rule to remember: A non-monetary item at historical cost stays translated at the rate of the transaction date (IAS 21, para. 23).","es":""}},{"id":"C","text":{"fr":"","en":"The machine must be translated at the average rate for the year, never at the closing rate or the transaction rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The average rate is not the rate for a non-monetary item at historical cost, which stays at the rate of the transaction date, unlike an approximation for income and expenses. Rule to remember: A non-monetary item at historical cost stays translated at the rate of the transaction date (IAS 21, para. 23).","es":""}},{"id":"D","text":{"fr":"","en":"The machine must be retranslated at the rate of the opening date of the year rather than at the closing date.","es":""},"correct":false,"feedback":{"fr":"","en":"Retranslating at the opening rate of the year is no more provided for: historical cost stays at the rate of the transaction date, without retranslation. Rule to remember: A non-monetary item at historical cost stays translated at the rate of the transaction date (IAS 21, para. 23).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000039","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.NONMONETARY_HISTORICAL"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000039","tested_point":"QST.IAS21.000039","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-historical"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Lenoir buys equipment for {foreign_amount} at the spot rate of 0.90 euro per 1 dollar. The closing rate is then 0.94 euro. The equipment is measured at cost (case convention: depreciation ignored). Calculate its carrying amount in euros at the closing date and the exchange difference to recognise.","es":""},"explanation":{"fr":"","en":"Approach: 80,000 × 0.90 = 72,000: a non-monetary item at historical cost, translated at the rate of the transaction date; it is not retranslated at 0.94, so the exchange difference is 0 (IAS 21, para. 23). Trap: retranslating the equipment at the closing rate to obtain 75,200 and a gain of 3,200. Rule to remember: A non-monetary item at historical cost keeps its amount translated at the rate of the transaction date.","es":""},"common_error":{"fr":"","en":"Retranslating an asset at historical cost at the closing rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"foreign_amount","value":"80000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Price of the equipment in dollars","es":""},"value":"80000","unit":"USD"}],"steps":[{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount in euros at the closing date","es":""},"answer":72000,"tolerance":1,"unit":"EUR"},{"id":"EXCHANGE_DIFFERENCE","label":{"fr":"","en":"Exchange difference to recognise in euros","es":""},"answer":0,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000041","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.NONMONETARY_FAIR_VALUE"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000041","tested_point":"QST.IAS21.000041","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-fv"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Gavrel holds a plot of land abroad measured at fair value, expressed in pounds. The fair value was determined on 30 November, when the rate is 1.18 euros per 1 pound; at 31 December, the closing date, the rate is 1.20 euros. Which rate translates the fair value into euros?","es":""},"explanation":{"fr":"","en":"The land is a non-monetary item measured at fair value: the rate that applies is the one in force when the fair value was determined, i.e. 1.18 on 30 November, and not the closing rate (IAS 21, para. 23). Trap: using the closing rate instead of the rate at the date of the fair value. Rule to remember: A non-monetary item at fair value is translated at the rate of the date the fair value was determined.","es":""},"common_error":{"fr":"","en":"Using the closing rate instead of the rate at the date of the fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate of 1.20 euros, the closing rate, as for every item in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"The closing rate applies to monetary items; for a non-monetary item at fair value, translation follows the date on which the fair value was determined. Rule to remember: A non-monetary item at fair value is translated at the rate of the date the fair value was determined (IAS 21, para. 23).","es":""}},{"id":"B","text":{"fr":"","en":"The rate of 1.18 euros, in force at the date the fair value was determined.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The rate at the date the land was acquired, to keep a historical basis.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition rate suits historical cost, not a fair value determined later: it is the date the fair value was determined that sets the rate. Rule to remember: A non-monetary item at fair value is translated at the rate of the date the fair value was determined (IAS 21, para. 23).","es":""}},{"id":"D","text":{"fr":"","en":"The average of 1.18 and 1.20, to smooth the effect of the two dates.","es":""},"correct":false,"feedback":{"fr":"","en":"No smoothing is provided for: the fair value is translated at the rate of the date it was determined, not at an average of several dates. Rule to remember: A non-monetary item at fair value is translated at the rate of the date the fair value was determined (IAS 21, para. 23).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000042","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.NONMONETARY_FAIR_VALUE"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000042","tested_point":"QST.IAS21.000042","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-fv"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"Mercier measures an investment property abroad at fair value: {foreign_amount}, determined at a date when the rate is 1.17 euros per 1 pound. The later closing rate is 1.21 euros. Calculate the amount in euros to use.","es":""},"explanation":{"fr":"","en":"Approach: 350,000 × 1.17 = 409,500: the fair value of a non-monetary item is translated at the rate of the date the fair value was determined, not at the closing rate of 1.21 (IAS 21, para. 23). Trap: using the closing rate of 1.21, which would give 423,500. Rule to remember: A non-monetary item at fair value is translated at the rate of the date the fair value was determined.","es":""},"common_error":{"fr":"","en":"Using the closing rate instead of the rate at the date of the fair value.","es":""},"format":"CALCULATION","placeholders":[{"id":"foreign_amount","value":"350000","unit":"GBP"}],"data":[{"label":{"fr":"","en":"Fair value in pounds","es":""},"value":"350000","unit":"GBP"}],"steps":[{"id":"TRANSLATED_AMOUNT","label":{"fr":"","en":"Fair value translated into euros","es":""},"answer":409500,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000044","standard_id":"IAS21","concept_ids":["IAS21.SUBSEQUENT.CARRYING_AMOUNT_COMPARISON"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000044","tested_point":"QST.IAS21.000044","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000005","section_id":"rule-lower"},"references":["IAS 21 §24","IAS 21 §25","IAS 21 §26"],"exercise":{"prompt":{"fr":"","en":"Dupré holds inventories with a cost of {cost_usd}, recorded at 90,000 euros at the rate of 0.90 euro. At the closing date their net realisable value is {nrv_usd} and the closing rate is 0.88 euro. Reminder of the standard: the cost is translated at the rate of its recording date and the net realisable value at the closing rate, before the comparison in euros. Calculate the lower of the two amounts and the write-down to recognise.","es":""},"explanation":{"fr":"","en":"Approach: Net realisable value is 98,000 × 0.88 = 86,240 euros; the translated cost is 90,000. The lower is 86,240 and the write-down is 90,000 − 86,240 = 3,760. The relevant standard first determines the carrying amount, then translation applies (IAS 21, paras. 24 to 26). Trap: comparing amounts in dollars, or translated at the same rate, without considering the rates of their respective dates. Rule to remember: The carrying amount is determined under the relevant standard, then the amounts compared are translated at the relevant rates.","es":""},"common_error":{"fr":"","en":"Comparing amounts translated at rates of different dates.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost_usd","value":"100000","unit":"USD"},{"id":"nrv_usd","value":"98000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Cost of inventories in dollars","es":""},"value":"100000","unit":"USD"},{"label":{"fr":"","en":"Net realisable value in dollars","es":""},"value":"98000","unit":"USD"}],"steps":[{"id":"LOWER_AMOUNT","label":{"fr":"","en":"Lower of the two amounts in euros","es":""},"answer":86240,"tolerance":1,"unit":"EUR"},{"id":"WRITE_DOWN","label":{"fr":"","en":"Write-down to recognise in euros","es":""},"answer":3760,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000045","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000045","tested_point":"QST.IAS21.000045","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-pl"},"references":["IAS 21 §28"],"exercise":{"prompt":{"fr":"","en":"The exchange difference on a trade payable denominated in a foreign currency is taken directly to equity.","es":""},"explanation":{"fr":"","en":"Exchange differences arising on settling monetary items or on translating them at rates different from those used on initial recognition or in previous financial statements are recognised in profit or loss for the period, except for the net investment in a foreign operation (IAS 21, para. 28). Trap: taking the exchange difference on a foreign currency payable to equity. Rule to remember: Exchange differences on monetary items are recognised in profit or loss in the period in which they arise, except for the net investment exception.","es":""},"common_error":{"fr":"","en":"Taking the exchange difference on a foreign currency payable to equity.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000046","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000046","tested_point":"QST.IAS21.000046","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-pl"},"references":["IAS 21 §28"],"exercise":{"prompt":{"fr":"","en":"Varennes settles a payable of {foreign_amount}, recorded at {carrying_amount}. The spot rate at the settlement date is 0.97 euro per 1 dollar. Calculate the cash paid in euros and the exchange loss to recognise in profit or loss.","es":""},"explanation":{"fr":"","en":"Approach: 30,000 × 0.97 = 29,100 paid; 29,100 − 28,200 = 900 of exchange loss, recognised in profit or loss for the period (IAS 21, para. 28). Trap: taking the loss of 900 to equity or ignoring it. Rule to remember: The exchange difference on settling a monetary item is recognised in profit or loss for the period.","es":""},"common_error":{"fr":"","en":"Taking the exchange difference on a foreign currency payable to equity.","es":""},"format":"CALCULATION","placeholders":[{"id":"foreign_amount","value":"30000","unit":"USD"},{"id":"carrying_amount","value":"28200","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Payable in dollars","es":""},"value":"30000","unit":"USD"},{"label":{"fr":"","en":"Carrying amount of the payable in euros","es":""},"value":"28200","unit":"EUR"}],"steps":[{"id":"SETTLEMENT_AMOUNT","label":{"fr":"","en":"Cash paid in euros","es":""},"answer":29100,"tolerance":1,"unit":"EUR"},{"id":"EXCHANGE_LOSS","label":{"fr":"","en":"Exchange loss in euros","es":""},"answer":900,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"EXCHANGE_LOSS","meaning":{"fr":"","en":"Exchange loss in euros","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash paid in euros","es":""},"value":29100,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the payable in euros","es":""},"value":28200,"unit":"EUR"}],"result":900,"unit":"EUR"}],"rationale":{"fr":"","en":"The exchange difference on settling a monetary item is recognised in profit or loss for the period.","es":""},"references":["REF.IAS21.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000048","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_NO_DIFFERENCE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000048","tested_point":"QST.IAS21.000048","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-nodiff"},"references":["IAS 21 §23"],"exercise":{"prompt":{"fr":"","en":"A property, plant and equipment item acquired in foreign currency and measured at cost gives rise to an exchange difference at each closing date.","es":""},"explanation":{"fr":"","en":"A non-monetary item at historical cost stays translated at the rate of the transaction date; with no new translation, it gives rise to no exchange difference at the closing date (IAS 21, para. 23). Trap: recognising an exchange difference on an asset carried at cost. Rule to remember: A non-monetary item measured at historical cost gives rise to no exchange difference, because it stays translated at the rate of the transaction date.","es":""},"common_error":{"fr":"","en":"Recognising an exchange difference on an asset carried at cost.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000049","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_OCI"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000049","tested_point":"QST.IAS21.000049","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-oci"},"references":["IAS 21 §30"],"exercise":{"prompt":{"fr":"","en":"Valmer revalues a foreign plot of land expressed in dollars. Case convention: the revaluation gain of 40,000 euros is recognised in other comprehensive income. Its exchange component is 12,000 euros. Where is this exchange component recognised?","es":""},"explanation":{"fr":"","en":"If a gain or loss on a non-monetary item is recognised in other comprehensive income, such as a revaluation, its exchange component is too; if it is recognised in profit or loss, the exchange component is recognised in profit or loss (IAS 21, para. 30). Trap: splitting the revaluation without isolating the exchange effect, or sending the exchange component to profit or loss by reflex. Rule to remember: The exchange component of a gain or loss on a non-monetary item follows the treatment of that gain or loss.","es":""},"common_error":{"fr":"","en":"Systematically sending the exchange component to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss, because every exchange difference affects the profit or loss of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"For a revalued non-monetary item, the exchange component follows the treatment of the gain or loss of which it is part; here that gain is in other comprehensive income, so its exchange component is too. Rule to remember: The exchange component of a gain or loss on a non-monetary item follows the treatment of that gain or loss (IAS 21, para. 30).","es":""}},{"id":"B","text":{"fr":"","en":"Half in profit or loss and half in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"No split into halves is provided for: the exchange component follows as a whole the treatment of the gain or loss that contains it, here other comprehensive income. Rule to remember: The exchange component of a gain or loss on a non-monetary item follows the treatment of that gain or loss (IAS 21, para. 30).","es":""}},{"id":"C","text":{"fr":"","en":"In other comprehensive income, like the rest of the revaluation gain.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Directly in equity, outside the statement of comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"A treatment outside the statement of comprehensive income is not provided for; the exchange component follows the gain to which it belongs, which is in other comprehensive income. Rule to remember: The exchange component of a gain or loss on a non-monetary item follows the treatment of that gain or loss (IAS 21, para. 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000050","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_OCI"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000050","tested_point":"QST.IAS21.000050","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-oci"},"references":["IAS 21 §30"],"exercise":{"prompt":{"fr":"","en":"Rochet revalues foreign equipment. Case convention: the revaluation is recognised in other comprehensive income. The total revaluation gain, in euros, is {total_change}, of which an exchange component of {change_component}. Calculate the non-exchange component and the total amount recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"Approach: 40,000 − 12,000 = 28,000 for the non-exchange component. As the gain is in other comprehensive income, the exchange component of 12,000 is too: 40,000 in total in other comprehensive income, 0 in profit or loss (IAS 21, para. 30). Trap: taking the exchange component of 12,000 to profit or loss. Rule to remember: The exchange component of a gain recognised in other comprehensive income is also recognised there.","es":""},"common_error":{"fr":"","en":"Splitting the revaluation without isolating the exchange effect.","es":""},"format":"CALCULATION","placeholders":[{"id":"total_change","value":"40000","unit":"EUR"},{"id":"change_component","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Total revaluation gain in euros","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Exchange component in euros","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"OTHER_COMPONENT","label":{"fr":"","en":"Non-exchange component in euros","es":""},"answer":28000,"tolerance":1,"unit":"EUR"},{"id":"AMOUNT_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Amount recognised in profit or loss in euros","es":""},"answer":0,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"OTHER_COMPONENT","meaning":{"fr":"","en":"Non-exchange component in euros","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total revaluation gain in euros","es":""},"value":40000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Exchange component in euros","es":""},"value":12000,"unit":"EUR"}],"result":28000,"unit":"EUR"}],"rationale":{"fr":"","en":"The exchange component of a gain recognised in other comprehensive income is also recognised there.","es":""},"references":["REF.IAS21.30"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000051","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGE_DIFFERENCES.NONMONETARY_OCI"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000051","tested_point":"QST.IAS21.000051","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":140,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000006","section_id":"rule-oci"},"references":["IAS 21 §30"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the exchange component of the gain or loss on a non-monetary item are correct? More than one answer.","es":""},"explanation":{"fr":"","en":"When a gain or loss on a non-monetary item is recognised in other comprehensive income, its exchange component is too; when it is recognised in profit or loss, its exchange component is recognised in profit or loss: the component follows the treatment of the whole. Professional judgement: identifying the exchange component requires a careful split (IAS 21, para. 30). Trap: systematically pulling the exchange component out of the gain or loss to take it to profit or loss. Rule to remember: The exchange component of the gain or loss on a non-monetary item follows the treatment of that gain or loss.","es":""},"common_error":{"fr":"","en":"Splitting the revaluation without isolating the exchange effect.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"If the gain or loss on the item is in profit or loss, its exchange component is in profit or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The exchange component follows the same treatment as the gain or loss of which it is part.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The exchange component is in profit or loss even when the gain or loss on the item is in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"Separating the exchange component from its gain or loss is not provided for: it follows the treatment of the whole, and so stays in other comprehensive income when the gain is there. Rule to remember: The exchange component of the gain or loss on a non-monetary item follows the treatment of that gain or loss (IAS 21, para. 30).","es":""}},{"id":"D","text":{"fr":"","en":"If the gain on the item, for example a revaluation, is in other comprehensive income, its exchange component is too.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000054","standard_id":"IAS21","concept_ids":["IAS21.NET_INVESTMENT.SEPARATE_VS_CONSOLIDATED"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000054","tested_point":"QST.IAS21.000054","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000007","section_id":"rule-currency"},"references":["IAS 21 §32"],"exercise":{"prompt":{"fr":"","en":"The parent Savoy granted its foreign subsidiary a loan of {loan_usd}, valued at {carrying_amount} at inception (0.92 euro per 1 dollar). The loan is part of the net investment. At the closing date the rate is 0.95 euro. Calculate the exchange difference and its recognition in the parent's separate statements, then in the consolidated statements.","es":""},"explanation":{"fr":"","en":"Approach: 1,000,000 × 0.95 = 950,000; 950,000 − 920,000 = 30,000 of gain. In the parent's separate statements, it is in profit or loss (30,000); in the consolidated statements, it is in other comprehensive income (30,000) and consolidated profit or loss includes none of it (0) (IAS 21, para. 32). Trap: applying the consolidated treatment to the separate statements, or the reverse. Rule to remember: The exchange difference on an item of the net investment is in profit or loss in the separate statements and in other comprehensive income in the consolidated statements.","es":""},"common_error":{"fr":"","en":"Applying the consolidated treatment to the separate statements.","es":""},"format":"CALCULATION","placeholders":[{"id":"loan_usd","value":"1000000","unit":"USD"},{"id":"carrying_amount","value":"920000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Loan in dollars","es":""},"value":"1000000","unit":"USD"},{"label":{"fr":"","en":"Carrying amount of the loan in euros before translation","es":""},"value":"920000","unit":"EUR"}],"steps":[{"id":"SEPARATE_PROFIT_OR_LOSS","label":{"fr":"","en":"Gain in profit or loss of the separate statements in euros","es":""},"answer":30000,"tolerance":1,"unit":"EUR"},{"id":"CONSOLIDATED_PROFIT_OR_LOSS","label":{"fr":"","en":"Amount in consolidated profit or loss in euros","es":""},"answer":0,"tolerance":1,"unit":"EUR"},{"id":"CONSOLIDATED_OCI","label":{"fr":"","en":"Amount in consolidated other comprehensive income in euros","es":""},"answer":30000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"SEPARATE_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Gain in profit or loss of the separate statements in euros","es":""},"expression":"(a * b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loan in dollars","es":""},"value":1000000,"unit":"USD"},{"symbol":"b","meaning":{"fr":"","en":"At the closing date the rate is 0.95 euro","es":""},"value":0.95},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of the loan in euros before translation","es":""},"value":920000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"The exchange difference on an item of the net investment is in profit or loss in the separate statements and in other comprehensive income in the consolidated statements.","es":""},"references":["REF.IAS21.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000055","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.CONDITIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000055","tested_point":"QST.IAS21.000055","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"rule-conditions"},"references":["IAS 21 §36"],"exercise":{"prompt":{"fr":"","en":"Bastel, whose selling prices, costs and financing have stayed in euros, wishes to adopt the dollar as its functional currency so that its presentation is closer to that of its competitors. Nothing has changed in its activities. What should be said about this wish?","es":""},"explanation":{"fr":"","en":"The functional currency reflects the underlying transactions, events and conditions; it changes only if they change. Here nothing has changed: a presentation wish does not justify changing the functional currency (IAS 21, para. 36). Trap: changing the functional currency for a presentation reason. Rule to remember: The functional currency reflects the underlying transactions, events and conditions and changes only if they change.","es":""},"common_error":{"fr":"","en":"Changing the functional currency for a presentation reason.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It justifies a change provided management approves it and informs the shareholders.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's approval does not replace a change in the underlying conditions: the functional currency reflects those conditions and is not modified by a simple decision. Rule to remember: The functional currency reflects the underlying transactions, events and conditions and changes only if they change (IAS 21, para. 36).","es":""}},{"id":"B","text":{"fr":"","en":"It justifies a change provided the comparative periods are restated in dollars.","es":""},"correct":false,"feedback":{"fr":"","en":"Restating the comparatives does not open the possibility of a change: without a change in the underlying transactions, events and conditions, the change is not justified. Rule to remember: The functional currency reflects the underlying transactions, events and conditions and changes only if they change (IAS 21, para. 36).","es":""}},{"id":"C","text":{"fr":"","en":"It justifies a change, the functional currency being at the entity's choice, like the presentation currency, if management so decides.","es":""},"correct":false,"feedback":{"fr":"","en":"The functional currency is not a matter of choice like the presentation currency; it reflects the underlying conditions and changes only if they change. Rule to remember: The functional currency reflects the underlying transactions, events and conditions and changes only if they change (IAS 21, para. 36).","es":""}},{"id":"D","text":{"fr":"","en":"It does not justify a change: the functional currency changes only if the underlying conditions change.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000056","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.PROSPECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000056","tested_point":"QST.IAS21.000056","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"rule-prospective"},"references":["IAS 21 §37"],"exercise":{"prompt":{"fr":"","en":"When the functional currency changes, the entity restates the comparative periods as if the new currency had always been its functional currency.","es":""},"explanation":{"fr":"","en":"A change of functional currency is applied prospectively: all items are translated into the new functional currency at the rate of the date of the change, without restating prior periods (IAS 21, paras. 35 to 37). Trap: restating the comparative periods after a change of functional currency. Rule to remember: A change of functional currency is applied prospectively, from the date of the change.","es":""},"common_error":{"fr":"","en":"Restating the comparative periods.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000057","standard_id":"IAS21","concept_ids":["IAS21.CHANGE_FUNCTIONAL.TRANSLATION_AT_DATE"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000057","tested_point":"QST.IAS21.000057","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000008","section_id":"rule-translation"},"references":["IAS 21 §37"],"exercise":{"prompt":{"fr":"","en":"Tessier, whose functional currency was the dollar, adopts the euro as its functional currency at a date when the rate is 0.92 euro per 1 dollar. A non-monetary piece of equipment has a carrying amount of {foreign_amount}. Calculate in euros the amount that becomes its new historical cost.","es":""},"explanation":{"fr":"","en":"Approach: 500,000 × 0.92 = 460,000: at the date of the change, items are translated into the new functional currency at the rate of that date, and the translated amount of a non-monetary item becomes its new historical cost (IAS 21, paras. 35 to 37). Trap: retranslating the equipment at the original historical rate. Rule to remember: On a change of functional currency, items are translated at the rate of the date of the change and translated non-monetary amounts become the new historical cost.","es":""},"common_error":{"fr":"","en":"Retranslating at the original historical rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"foreign_amount","value":"500000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Carrying amount of the equipment in dollars","es":""},"value":"500000","unit":"USD"}],"steps":[{"id":"NEW_HISTORICAL_AMOUNT","label":{"fr":"","en":"New historical cost in euros","es":""},"answer":460000,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000058","standard_id":"IAS21","concept_ids":["IAS21.PRESENTATION.CHOICE_OF_CURRENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000058","tested_point":"QST.IAS21.000058","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-choice"},"references":["IAS 21 §38"],"exercise":{"prompt":{"fr":"","en":"An entity may present its financial statements in any currency of its choice.","es":""},"explanation":{"fr":"","en":"The presentation currency is a matter of the entity's choice: it may present its financial statements in any currency, or in several; if it differs from the functional currency, the results and financial position are translated (IAS 21, paras. 38 to 42). Trap: imposing the functional currency as the presentation currency. Rule to remember: An entity is free to present its financial statements in the currency or currencies of its choice.","es":""},"common_error":{"fr":"","en":"Imposing the functional currency as the presentation currency.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000059","standard_id":"IAS21","concept_ids":["IAS21.PRESENTATION.CHOICE_OF_CURRENCY"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000059","tested_point":"QST.IAS21.000059","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-choice"},"references":["IAS 21 §38"],"exercise":{"prompt":{"fr":"","en":"Lucerne has the euro as its functional currency and wants to present its financial statements in dollars, the currency of its investors. What is the consistent approach?","es":""},"explanation":{"fr":"","en":"The entity may present in any currency; if the presentation currency differs from the functional currency, the results and financial position are translated under the translation rules, which distinguish between items (IAS 21, paras. 38 to 42). Trap: imposing the functional currency as the presentation currency, or the reverse. Rule to remember: A presentation currency different from the functional currency leads to translating the results and financial position.","es":""},"common_error":{"fr":"","en":"Imposing the functional currency as the presentation currency.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Present in dollars and translate results and financial position under the standard's translation rules.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Change its functional currency to the dollar, the presentation currency being binding as the functional currency.","es":""},"correct":false,"feedback":{"fr":"","en":"The presentation currency does not dictate the functional currency: the latter reflects the underlying conditions, and translation exists precisely to present in another currency. Rule to remember: A presentation currency different from the functional currency leads to translating the results and financial position (IAS 21, paras. 38 to 42).","es":""}},{"id":"C","text":{"fr":"","en":"Give up the dollar, the presentation currency having to be the functional currency.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing requires aligning the presentation currency with the functional currency: the entity is free to present in any currency, with translation where it differs. Rule to remember: A presentation currency different from the functional currency leads to translating the results and financial position (IAS 21, paras. 38 to 42).","es":""}},{"id":"D","text":{"fr":"","en":"Present in dollars by applying the average rate for the year to all items without distinction.","es":""},"correct":false,"feedback":{"fr":"","en":"A single average rate does not suit all items: translation distinguishes in particular assets and liabilities, translated at the closing rate, from income and expenses. Rule to remember: A presentation currency different from the functional currency leads to translating the results and financial position (IAS 21, paras. 38 to 42).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000060","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.ASSETS_LIABILITIES_CLOSING"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS21.000005","tested_point":"VG.IAS21.000005","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"To translate the financial statements of a foreign subsidiary into the presentation currency (non-hyperinflationary economy), which rate applies to the assets and liabilities of the statement of financial position?","es":""},"explanation":{"fr":"","en":"For an entity that is not hyperinflationary, the assets and liabilities of each statement of financial position presented, comparatives included, are translated at the closing rate of that statement; income and expenses follow other rates (IAS 21, para. 39). Trap: translating assets at the average rate. Rule to remember: The assets and liabilities of each statement of financial position presented are translated at the closing rate of that statement.","es":""},"common_error":{"fr":"","en":"Translating assets at the average rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average rate for the period, for every line of the statement.","es":""},"correct":false,"feedback":{"fr":"","en":"The average rate is an approximation for income and expenses, not for assets and liabilities, which are translated at the closing rate of the statement presented. Rule to remember: The assets and liabilities of each statement of financial position presented are translated at the closing rate of that statement (IAS 21, para. 39).","es":""}},{"id":"B","text":{"fr":"","en":"The closing rate of that statement of financial position.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The rate at the date each asset and liability was acquired or incurred.","es":""},"correct":false,"feedback":{"fr":"","en":"Historical rates do not apply to assets and liabilities when translating into a presentation currency: they are translated at the closing rate of each statement presented. Rule to remember: The assets and liabilities of each statement of financial position presented are translated at the closing rate of that statement (IAS 21, para. 39).","es":""}},{"id":"D","text":{"fr":"","en":"The rate at the date the board of directors approves the accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"The date the accounts are approved is not the rate used: the standard provides for the closing rate of the statement of financial position concerned, not that of a governance act. Rule to remember: The assets and liabilities of each statement of financial position presented are translated at the closing rate of that statement (IAS 21, para. 39).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000061","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.ASSETS_LIABILITIES_CLOSING"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000061","tested_point":"QST.IAS21.000061","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"The British subsidiary of Hadrel reports at the closing date assets of {assets} and liabilities of {liabilities}. The closing rate is 1.18 euros per 1 pound; the group's presentation currency is the euro. Calculate the translated assets and liabilities.","es":""},"explanation":{"fr":"","en":"Approach: 2,000,000 × 1.18 = 2,360,000 for assets; 800,000 × 1.18 = 944,000 for liabilities; both are translated at the closing rate (IAS 21, para. 39). Trap: translating some of the items at the average rate. Rule to remember: Assets and liabilities are translated at the closing rate of the statement presented.","es":""},"common_error":{"fr":"","en":"Translating assets at the average rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"assets","value":"2000000","unit":"GBP"},{"id":"liabilities","value":"800000","unit":"GBP"}],"data":[{"label":{"fr":"","en":"Subsidiary's assets in pounds","es":""},"value":"2000000","unit":"GBP"},{"label":{"fr":"","en":"Subsidiary's liabilities in pounds","es":""},"value":"800000","unit":"GBP"}],"steps":[{"id":"TRANSLATED_ASSETS","label":{"fr":"","en":"Translated assets in euros","es":""},"answer":2360000,"tolerance":1,"unit":"EUR"},{"id":"TRANSLATED_LIABILITIES","label":{"fr":"","en":"Translated liabilities in euros","es":""},"answer":944000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"TRANSLATED_ASSETS","meaning":{"fr":"","en":"Translated assets in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Subsidiary's assets in pounds","es":""},"value":2000000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"The closing rate is 1.18 euros","es":""},"value":1.18}],"result":2360000,"unit":"EUR"},{"step":"TRANSLATED_LIABILITIES","meaning":{"fr":"","en":"Translated liabilities in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Subsidiary's liabilities in pounds","es":""},"value":800000,"unit":"GBP"},{"symbol":"b","meaning":{"fr":"","en":"The closing rate is 1.18 euros","es":""},"value":1.18}],"result":944000,"unit":"EUR"}],"rationale":{"fr":"","en":"Assets and liabilities are translated at the closing rate of the statement presented.","es":""},"references":["REF.IAS21.39"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000062","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.ASSETS_LIABILITIES_CLOSING"],"dimension":"APPLICATION","context":"V1_VG.IAS21.000005","tested_point":"VG.IAS21.000005","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"The Ormand group presents year N and the comparative N-1 in euros. Its Swiss subsidiary has net assets of 900,000 Swiss francs at the closing date N (closing rate 1.05 euros) and 800,000 francs at the closing date N-1 (closing rate 1.00 euro). How does it translate the comparative N-1?","es":""},"explanation":{"fr":"","en":"The comparative N-1 is a statement of financial position presented: its net assets are translated at the closing rate N-1, i.e. 800,000 × 1.00 = 800,000 euros, and the net assets N at 900,000 × 1.05 = 945,000 euros (IAS 21, para. 39). Trap: using the most recent closing rate for the comparative. Rule to remember: The assets and liabilities of each statement presented, comparatives included, are translated at the closing rate of that statement.","es":""},"common_error":{"fr":"","en":"Translating the comparative at the closing rate of the current year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the closing rate N, i.e. 1.05 euros, so that the two years remain fully comparable with each other.","es":""},"correct":false,"feedback":{"fr":"","en":"Applying the closing rate N to the comparative does not follow the rule: each statement presented, comparative included, is translated at its own closing rate. Rule to remember: The assets and liabilities of each statement presented, comparatives included, are translated at the closing rate of that statement (IAS 21, para. 39).","es":""}},{"id":"B","text":{"fr":"","en":"At the average of the two dates, i.e. 1.025 euros, to smooth the exchange effect between the years.","es":""},"correct":false,"feedback":{"fr":"","en":"An average of two dates is not a rate provided for assets and liabilities: the closing rate of each statement applies, including to the comparative. Rule to remember: The assets and liabilities of each statement presented, comparatives included, are translated at the closing rate of that statement (IAS 21, para. 39).","es":""}},{"id":"C","text":{"fr":"","en":"At the closing rate of the N-1 statement, i.e. 1.00 euro: each statement presented is translated at its own closing rate.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At the closing rate N-1 for assets, but at the closing rate N for liabilities, to reflect the movement in the net position.","es":""},"correct":false,"feedback":{"fr":"","en":"Mixing two rates for the same statement is not provided for: the assets and liabilities of one statement are translated at the closing rate of that statement. Rule to remember: The assets and liabilities of each statement presented, comparatives included, are translated at the closing rate of that statement (IAS 21, para. 39).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS21.000063","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.INCOME_EXPENSES_TRANSACTION_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS21.000006","tested_point":"VG.IAS21.000006","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"When translating into the presentation currency, income and expenses of each statement of profit or loss are translated at the rates at the dates of the transactions.","es":""},"explanation":{"fr":"","en":"For an entity that is not hyperinflationary, income and expenses of each statement of profit or loss presented, comparatives included, are translated at the rates at the dates of the transactions, as opposed to assets and liabilities translated at the closing rate (IAS 21, para. 39). Trap: translating profit or loss at the closing rate. Rule to remember: Income and expenses of each statement of profit or loss are translated at the rates at the dates of the transactions.","es":""},"common_error":{"fr":"","en":"Translating profit or loss at the closing rate.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000064","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.INCOME_EXPENSES_TRANSACTION_RATE"],"dimension":"ANALYSIS","context":"V1_VG.IAS21.000006","tested_point":"VG.IAS21.000006","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"The Lambert group's accountant translates the British subsidiary's profit of 100,000 pounds at the closing rate of 1.18 euros, i.e. 118,000 euros, writing: \"Profit is translated like assets and liabilities.\" What is the error?","es":""},"explanation":{"fr":"","en":"The accountant applied the closing rate to profit: assets and liabilities are translated at that rate; income and expenses are translated at the rates at the dates of the transactions, which changes the translated profit (IAS 21, para. 39). Trap: translating profit or loss at the closing rate. Rule to remember: Income and expenses are translated at the rates at the dates of the transactions, assets and liabilities at the closing rate.","es":""},"common_error":{"fr":"","en":"Translating profit or loss at the closing rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Profit is translated at the opening rate of the year, the only stable rate of the period, which avoids fluctuations.","es":""},"correct":false,"feedback":{"fr":"","en":"The opening rate is not provided for profit: income and expenses follow the rates at the dates of their transactions, not a single rate chosen for its stability. Rule to remember: Income and expenses are translated at the rates at the dates of the transactions, assets and liabilities at the closing rate (IAS 21, para. 39).","es":""}},{"id":"B","text":{"fr":"","en":"Profit is translated at the closing rate, but the translation difference that results must then be added to profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The translation difference is not added to profit; it is recognised in other comprehensive income, and profit itself is not translated at the closing rate. Rule to remember: Income and expenses are translated at the rates at the dates of the transactions, assets and liabilities at the closing rate (IAS 21, para. 39).","es":""}},{"id":"C","text":{"fr":"","en":"Profit is translated at the rate of the date the accounts are published, which is the most recent.","es":""},"correct":false,"feedback":{"fr":"","en":"The publication date is not a rate provided for: income and expenses follow the rates at the dates of the transactions, which may be before any publication. Rule to remember: Income and expenses are translated at the rates at the dates of the transactions, assets and liabilities at the closing rate (IAS 21, para. 39).","es":""}},{"id":"D","text":{"fr":"","en":"Income and expenses are translated at the rates at the dates of the transactions, or at a rate that approximates them.","es":""},"correct":true}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS21.000065","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.INCOME_EXPENSES_TRANSACTION_RATE"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000065","tested_point":"QST.IAS21.000065","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-method"},"references":["IAS 21 §39"],"exercise":{"prompt":{"fr":"","en":"The British subsidiary of Cordel earns income of {revenue_h1} in the first half and {revenue_h2} in the second, and incurs expenses of {expenses_h1} then {expenses_h2}. Case convention: the half-year rates, 1.10 euros then 1.16 euros per 1 pound, approximate the rates at the dates of the transactions. Calculate income, expenses and profit translated into euros.","es":""},"explanation":{"fr":"","en":"Approach: Income: 200,000 × 1.10 + 300,000 × 1.16 = 220,000 + 348,000 = 568,000. Expenses: 150,000 × 1.10 + 250,000 × 1.16 = 165,000 + 290,000 = 455,000. Profit: 568,000 − 455,000 = 113,000 (IAS 21, para. 39). Trap: applying the closing rate or a single rate to the whole year. Rule to remember: Income and expenses are translated at the rates at the dates of the transactions, or at a rate that approximates them.","es":""},"common_error":{"fr":"","en":"Translating profit or loss at the closing rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"revenue_h1","value":"200000","unit":"GBP"},{"id":"revenue_h2","value":"300000","unit":"GBP"},{"id":"expenses_h1","value":"150000","unit":"GBP"},{"id":"expenses_h2","value":"250000","unit":"GBP"}],"data":[{"label":{"fr":"","en":"Income of the first half in pounds","es":""},"value":"200000","unit":"GBP"},{"label":{"fr":"","en":"Income of the second half in pounds","es":""},"value":"300000","unit":"GBP"},{"label":{"fr":"","en":"Expenses of the first half in pounds","es":""},"value":"150000","unit":"GBP"},{"label":{"fr":"","en":"Expenses of the second half in pounds","es":""},"value":"250000","unit":"GBP"}],"steps":[{"id":"TRANSLATED_REVENUE","label":{"fr":"","en":"Translated income in euros","es":""},"answer":568000,"tolerance":1,"unit":"EUR"},{"id":"TRANSLATED_EXPENSES","label":{"fr":"","en":"Translated expenses in euros","es":""},"answer":455000,"tolerance":1,"unit":"EUR"},{"id":"TRANSLATED_PROFIT","label":{"fr":"","en":"Translated profit in euros","es":""},"answer":113000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"TRANSLATED_PROFIT","meaning":{"fr":"","en":"Translated profit in euros","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Translated income in euros","es":""},"value":568000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Translated expenses in euros","es":""},"value":455000,"unit":"EUR"}],"result":113000,"unit":"EUR"}],"rationale":{"fr":"","en":"Income and expenses are translated at the rates at the dates of the transactions, or at a rate that approximates them.","es":""},"references":["REF.IAS21.39"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000066","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.AVERAGE_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000066","tested_point":"QST.IAS21.000066","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-average"},"references":["IAS 21 §40"],"exercise":{"prompt":{"fr":"","en":"For practical reasons, a rate that approximates the rates at the dates of the transactions, for example an average rate for the period, is often used to translate income and expenses.","es":""},"explanation":{"fr":"","en":"For practical reasons, a rate that approximates the rates at the dates of the transactions, such as an average rate for the period, is often used to translate income and expenses; it is inappropriate if rates fluctuate significantly (IAS 21, para. 40). Trap: applying the average rate without checking that rates have not fluctuated significantly. Rule to remember: A rate approximating the transaction-date rates, for example an average rate for the period, is often used to translate income and expenses.","es":""},"common_error":{"fr":"","en":"Using the simple average of the opening and closing rates when rates fluctuate.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000067","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.AVERAGE_RATE"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000067","tested_point":"QST.IAS21.000067","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000009","section_id":"rule-average"},"references":["IAS 21 §40"],"exercise":{"prompt":{"fr":"","en":"The American subsidiary of Marchal earns income of {revenue} and incurs expenses of {expenses} over the year. Case convention: rates fluctuated little during the year and the average rate of 0.91 euro per 1 dollar approximates the transaction-date rates. Calculate income and expenses translated into euros.","es":""},"explanation":{"fr":"","en":"Approach: 600,000 × 0.91 = 546,000 for income; 480,000 × 0.91 = 436,800 for expenses; the average rate is used as an approximation of the transaction-date rates (IAS 21, para. 40). Trap: using the closing rate instead of the average rate given by the case. Rule to remember: An average rate may translate income and expenses when it approximates the rates at the dates of the transactions.","es":""},"common_error":{"fr":"","en":"Translating profit or loss at the closing rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"revenue","value":"600000","unit":"USD"},{"id":"expenses","value":"480000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Income for the year in dollars","es":""},"value":"600000","unit":"USD"},{"label":{"fr":"","en":"Expenses for the year in dollars","es":""},"value":"480000","unit":"USD"}],"steps":[{"id":"TRANSLATED_REVENUE","label":{"fr":"","en":"Translated income in euros","es":""},"answer":546000,"tolerance":1,"unit":"EUR"},{"id":"TRANSLATED_EXPENSES","label":{"fr":"","en":"Translated expenses in euros","es":""},"answer":436800,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"TRANSLATED_REVENUE","meaning":{"fr":"","en":"Translated income in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Income for the year in dollars","es":""},"value":600000,"unit":"USD"},{"symbol":"b","meaning":{"fr":"","en":"Case convention: rates fluctuated little during the year and the average rate of 0.91 euro","es":""},"value":0.91}],"result":546000,"unit":"EUR"},{"step":"TRANSLATED_EXPENSES","meaning":{"fr":"","en":"Translated expenses in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expenses for the year in dollars","es":""},"value":480000,"unit":"USD"},{"symbol":"b","meaning":{"fr":"","en":"Case convention: rates fluctuated little during the year and the average rate of 0.91 euro","es":""},"value":0.91}],"result":436800,"unit":"EUR"}],"rationale":{"fr":"","en":"An average rate may translate income and expenses when it approximates the rates at the dates of the transactions.","es":""},"references":["REF.IAS21.40"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000069","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.RESERVE_OCI"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000069","tested_point":"QST.IAS21.000069","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"rule-reserve"},"references":["IAS 21 §39","IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"When translating the statements of a foreign operation into the presentation currency, where are the translation differences recognised?","es":""},"explanation":{"fr":"","en":"Translation differences are recognised in other comprehensive income and not in profit or loss, because their effect on cash flows is nil or small; they are accumulated in a separate component of equity until the foreign operation is disposed of (IAS 21, paras. 39 and 41). Trap: taking the translation difference to profit or loss. Rule to remember: Translation differences are recognised in other comprehensive income and accumulated in a separate component of equity until disposal.","es":""},"common_error":{"fr":"","en":"Taking the translation difference to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In other comprehensive income, accumulated in a separate component of equity.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In profit or loss for the period, like any other exchange difference.","es":""},"correct":false,"feedback":{"fr":"","en":"The translation difference is not an exchange difference on a transaction: it is recognised in other comprehensive income because its effect on cash flows is nil or small. Rule to remember: Translation differences are recognised in other comprehensive income and accumulated in a separate component of equity until disposal (IAS 21, paras. 39 and 41).","es":""}},{"id":"C","text":{"fr":"","en":"Directly in retained earnings, without passing through other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"A direct entry to retained earnings is not provided for: the differences are accumulated in a separate component of equity, after passing through other comprehensive income. Rule to remember: Translation differences are recognised in other comprehensive income and accumulated in a separate component of equity until disposal (IAS 21, paras. 39 and 41).","es":""}},{"id":"D","text":{"fr":"","en":"In profit or loss while the operation is held, then in other comprehensive income on disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The direction is reversed: the differences go to other comprehensive income as soon as they arise, and it is on disposal that they are reclassified to profit or loss. Rule to remember: Translation differences are recognised in other comprehensive income and accumulated in a separate component of equity until disposal (IAS 21, paras. 39 and 41).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000070","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.RESERVE_OCI"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000070","tested_point":"QST.IAS21.000070","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"rule-reserve"},"references":["IAS 21 §39","IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"The American subsidiary of Villard has opening net assets of {opening_net_assets}, makes a profit of {profit} and has closing net assets of {closing_net_assets} (case convention: no dividend or contribution). Rates: 0.90 euro at the opening date, 0.92 euro on average for the profit, 0.95 euro at the closing date. Calculate the translation difference for the year in euros.","es":""},"explanation":{"fr":"","en":"Approach: Closing net assets translated: 900,000 × 0.95 = 855,000. Opening net assets: 800,000 × 0.90 = 720,000. Translated profit: 100,000 × 0.92 = 92,000. Difference: 855,000 − 720,000 − 92,000 = 43,000, recognised in other comprehensive income (IAS 21, paras. 39 and 41). Trap: forgetting to translate the profit at its own rate or to deduct the opening net assets. Rule to remember: The translation difference is the closing net assets at the closing rate less the opening net assets, plus the profit translated at its own rate.","es":""},"common_error":{"fr":"","en":"Taking the translation difference to profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_net_assets","value":"800000","unit":"USD"},{"id":"profit","value":"100000","unit":"USD"},{"id":"closing_net_assets","value":"900000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Opening net assets in dollars","es":""},"value":"800000","unit":"USD"},{"label":{"fr":"","en":"Profit for the year in dollars","es":""},"value":"100000","unit":"USD"},{"label":{"fr":"","en":"Closing net assets in dollars","es":""},"value":"900000","unit":"USD"}],"steps":[{"id":"TRANSLATION_DIFFERENCE","label":{"fr":"","en":"Translation difference for the year in euros","es":""},"answer":43000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"TRANSLATION_DIFFERENCE","meaning":{"fr":"","en":"Translation difference for the year in euros","es":""},"expression":"(a * b) - (c * d) - (e * f)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing net assets in dollars","es":""},"value":900000,"unit":"USD"},{"symbol":"b","meaning":{"fr":"","en":"on average for the profit, 0.95 euro","es":""},"value":0.95},{"symbol":"c","meaning":{"fr":"","en":"Opening net assets in dollars","es":""},"value":800000,"unit":"USD"},{"symbol":"d","meaning":{"fr":"","en":"Rates: 0.90 euro","es":""},"value":0.9},{"symbol":"e","meaning":{"fr":"","en":"Profit for the year in dollars","es":""},"value":100000,"unit":"USD"},{"symbol":"f","meaning":{"fr":"","en":"at the opening date, 0.92 euro","es":""},"value":0.92}],"result":43000,"unit":"EUR"}],"rationale":{"fr":"","en":"The translation difference is the closing net assets at the closing rate less the opening net assets, plus the profit translated at its own rate.","es":""},"references":["REF.IAS21.39","REF.IAS21.41"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000072","standard_id":"IAS21","concept_ids":["IAS21.TRANSLATION.NCI_ALLOCATION"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000072","tested_point":"QST.IAS21.000072","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000010","section_id":"rule-nci"},"references":["IAS 21 §41"],"exercise":{"prompt":{"fr":"","en":"The Eldrin group consolidates a foreign subsidiary that it holds at 75%. The translation difference for the year is {translation_difference}. Non-controlling interests hold {nci_percentage} of the subsidiary. Calculate the share of the difference allocated to non-controlling interests and the remaining share.","es":""},"explanation":{"fr":"","en":"Approach: 120,000 × 25% = 30,000 allocated to non-controlling interests; 120,000 − 30,000 = 90,000 for the remaining share. The share of accumulated differences attributable to non-controlling interests is allocated to them (IAS 21, para. 41); case convention: that share follows the percentage held. Trap: allocating the whole translation difference to the owners of the parent. Rule to remember: The share of the translation difference that belongs to non-controlling interests is allocated to them.","es":""},"common_error":{"fr":"","en":"Allocating the whole translation difference to the owners of the parent.","es":""},"format":"CALCULATION","placeholders":[{"id":"translation_difference","value":"120000","unit":"EUR"},{"id":"nci_percentage","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Translation difference for the year","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Share of non-controlling interests","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"NCI_SHARE","label":{"fr":"","en":"Share allocated to non-controlling interests in euros","es":""},"answer":30000,"tolerance":1,"unit":"EUR"},{"id":"PARENT_SHARE","label":{"fr":"","en":"Remaining share in euros","es":""},"answer":90000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"NCI_SHARE","meaning":{"fr":"","en":"Share allocated to non-controlling interests in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Translation difference for the year","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of non-controlling interests","es":""},"value":25,"unit":"PERCENT"}],"result":30000,"unit":"EUR"},{"step":"PARENT_SHARE","meaning":{"fr":"","en":"Remaining share in euros","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Translation difference for the year","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share allocated to non-controlling interests in euros","es":""},"value":30000,"unit":"EUR"}],"result":90000,"unit":"EUR"}],"rationale":{"fr":"","en":"The share of the translation difference that belongs to non-controlling interests is allocated to them.","es":""},"references":["REF.IAS21.41"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000073","standard_id":"IAS21","concept_ids":["IAS21.HYPERINFLATION.TRANSLATION"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000073","tested_point":"QST.IAS21.000073","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000013","section_id":"rule-translation"},"references":["IAS 21 §42","IAS 21 §43"],"exercise":{"prompt":{"fr":"","en":"Karvel's subsidiary has a functional currency (LCU) of a hyperinflationary economy; its net assets, after prior restatement under IAS 29, are {restated_amount}. The most recent closing rate is 0.05 euro per 1 LCU. Calculate the amount translated into euros.","es":""},"explanation":{"fr":"","en":"Approach: 12,000,000 × 0.05 = 600,000: after restatement under IAS 29, all amounts of an operation whose functional currency is hyperinflationary are translated at the most recent closing rate (IAS 21, paras. 42 and 43). Trap: applying the average rate to a hyperinflationary operation. Rule to remember: For a hyperinflationary operation, restated amounts are translated at the most recent closing rate.","es":""},"common_error":{"fr":"","en":"Applying the average rate to a hyperinflationary operation.","es":""},"format":"CALCULATION","placeholders":[{"id":"restated_amount","value":"12000000","unit":"LCU"}],"data":[{"label":{"fr":"","en":"Restated net assets in local currency units","es":""},"value":"12000000","unit":"LCU"}],"steps":[{"id":"TRANSLATED_AMOUNT","label":{"fr":"","en":"Amount translated into euros","es":""},"answer":600000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"TRANSLATED_AMOUNT","meaning":{"fr":"","en":"Amount translated into euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Restated net assets in local currency units","es":""},"value":12000000,"unit":"LCU"},{"symbol":"b","meaning":{"fr":"","en":"The most recent closing rate is 0.05 euro","es":""},"value":0.05}],"result":600000,"unit":"EUR","rationale":{"fr":"","en":"Approach: 12,000,000 × 0.05 = 600,000: after restatement under IAS 29, all amounts of an operation whose functional currency is hyperinflationary are translated at the most recent closing rate (IAS 21, paras. 42 and 43).","es":""}}],"rationale":{"fr":"","en":"For a hyperinflationary operation, restated amounts are translated at the most recent closing rate.","es":""},"references":["REF.IAS21.42","REF.IAS21.43"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000074","standard_id":"IAS21","concept_ids":["IAS21.HYPERINFLATION.IAS29_LINK"],"dimension":"ANALYSIS","context":"V1_QST.IAS21.000074","tested_point":"QST.IAS21.000074","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000013","section_id":"rule-link"},"references":["IAS 21 §42","IAS 21 §43"],"exercise":{"prompt":{"fr":"","en":"The Tolbec group translates into euros the statements of its subsidiary whose functional currency is that of a hyperinflationary economy, without prior restatement, at the closing rate. Its note states: \"Restatement under IAS 29 is not needed before translation.\" What is the error?","es":""},"explanation":{"fr":"","en":"For an operation whose functional currency is that of a hyperinflationary economy, all amounts are translated at the most recent closing rate, after prior restatement under IAS 29: omitting the restatement distorts the translated amounts (IAS 21, paras. 42 and 43). Trap: translating before restating. Rule to remember: A hyperinflationary operation is restated under IAS 29, then translated at the most recent closing rate.","es":""},"common_error":{"fr":"","en":"Translating before restating.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The statements must be translated first, then restated under IAS 29 in the presentation currency.","es":""},"correct":false,"feedback":{"fr":"","en":"The order is reversed: restatement under IAS 29 takes place before translation at the most recent closing rate, not after. Rule to remember: A hyperinflationary operation is restated under IAS 29, then translated at the most recent closing rate (IAS 21, paras. 42 and 43).","es":""}},{"id":"B","text":{"fr":"","en":"The statements must first be restated under IAS 29, then translated at the most recent closing rate.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The statements must be translated at the average rate, restatement then being pointless.","es":""},"correct":false,"feedback":{"fr":"","en":"The average rate does not suit a hyperinflationary operation, all of whose amounts are translated at the most recent closing rate after restatement. Rule to remember: A hyperinflationary operation is restated under IAS 29, then translated at the most recent closing rate (IAS 21, paras. 42 and 43).","es":""}},{"id":"D","text":{"fr":"","en":"The statements must be restated under IAS 29, then translated at the average rate for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Restatement under IAS 29 does come before translation, but translation uses the most recent closing rate, not the average rate (IAS 21, paras. 42 and 43). Rule to remember: A hyperinflationary operation is restated under IAS 29, then translated at the most recent closing rate (IAS 21, paras. 42 and 43).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000076","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.GOODWILL_FV_ADJUSTMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000076","tested_point":"QST.IAS21.000076","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-goodwill"},"references":["IAS 21 §47"],"exercise":{"prompt":{"fr":"","en":"Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of that operation, expressed in its functional currency and translated at the closing rate.","es":""},"explanation":{"fr":"","en":"The assets and liabilities of the foreign operation arising from the acquisition, including goodwill and fair value adjustments, are expressed in its functional currency and translated at the closing rate (IAS 21, para. 47). Trap: keeping goodwill at the historical rate in the group's currency. Rule to remember: Goodwill and fair value adjustments of a foreign operation are expressed in its functional currency and translated at the closing rate.","es":""},"common_error":{"fr":"","en":"Keeping goodwill at the historical rate in the group's currency.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000077","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.GOODWILL_FV_ADJUSTMENTS"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000077","tested_point":"QST.IAS21.000077","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-goodwill"},"references":["IAS 21 §47"],"exercise":{"prompt":{"fr":"","en":"The Aubrac group acquired an American operation; the goodwill of {goodwill_usd} is expressed in its functional currency. It was translated at the opening date at 0.90 euro per 1 dollar; the closing rate is 0.95 euro. Calculate the goodwill translated at the closing date and the translation movement for the year.","es":""},"explanation":{"fr":"","en":"Approach: 500,000 × 0.95 = 475,000 at the closing date; at the opening date 500,000 × 0.90 = 450,000; the translation movement is 475,000 − 450,000 = 25,000 (IAS 21, para. 47). Trap: keeping goodwill at 450,000 at the opening rate. Rule to remember: Goodwill of a foreign operation is an asset of that operation translated at the closing rate.","es":""},"common_error":{"fr":"","en":"Keeping goodwill at the historical rate in the group's currency.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_usd","value":"500000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Goodwill in dollars","es":""},"value":"500000","unit":"USD"}],"steps":[{"id":"CLOSING_GOODWILL","label":{"fr":"","en":"Goodwill translated at the closing date in euros","es":""},"answer":475000,"tolerance":1,"unit":"EUR"},{"id":"TRANSLATION_DIFFERENCE","label":{"fr":"","en":"Translation movement for the year in euros","es":""},"answer":25000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_GOODWILL","meaning":{"fr":"","en":"Goodwill translated at the closing date in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill in dollars","es":""},"value":500000,"unit":"USD"},{"symbol":"b","meaning":{"fr":"","en":"the closing rate is 0.95 euro","es":""},"value":0.95}],"result":475000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill of a foreign operation is an asset of that operation translated at the closing rate.","es":""},"references":["REF.IAS21.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000080","standard_id":"IAS21","concept_ids":["IAS21.FOREIGN_OPERATION.DIFFERENT_REPORTING_DATE"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000080","tested_point":"QST.IAS21.000080","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-dates"},"references":["IAS 21 §44","IAS 21 §45","IAS 21 §46"],"exercise":{"prompt":{"fr":"","en":"The foreign subsidiary of the Marenne group closes its accounts two months before the parent. Between its closing date and the group's, the rate of its currency moved significantly. What must the group do for consolidation?","es":""},"explanation":{"fr":"","en":"For a foreign operation whose closing date differs from the reporting entity's, consolidation adjusts for the effects of significant exchange rate movements between the two dates. Professional judgement: whether a movement is significant is assessed with no threshold imposed (IAS 21, paras. 44 to 46). Trap: not adjusting for the exchange rates at the different closing dates. Rule to remember: When closing dates differ, the effects of significant exchange rate movements between them are adjusted for.","es":""},"common_error":{"fr":"","en":"Not adjusting for the exchange rates at the different closing dates.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use the subsidiary's statements as they stand, the difference in dates having to be without effect on consolidation.","es":""},"correct":false,"feedback":{"fr":"","en":"Not adjusting means ignoring significant exchange rate movements that occurred between the two dates; the standard provides for adjusting for their effects. Rule to remember: When closing dates differ, the effects of significant exchange rate movements between them are adjusted for (IAS 21, paras. 44 to 46).","es":""}},{"id":"B","text":{"fr":"","en":"Translate the subsidiary's statements at the parent's closing rate, with no other adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"Applying the parent's closing rate to the subsidiary's statements with no adjustment does not deal with the difference in dates; the effects of significant movements between the dates must be adjusted. Rule to remember: When closing dates differ, the effects of significant exchange rate movements between them are adjusted for (IAS 21, paras. 44 to 46).","es":""}},{"id":"C","text":{"fr":"","en":"Adjust for the effects of the significant exchange rate movements that occurred between the two closing dates.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Defer the consolidation of the subsidiary to the following year, the dates not coinciding.","es":""},"correct":false,"feedback":{"fr":"","en":"A difference in dates does not allow consolidation to be deferred: the subsidiary is consolidated, adjusting for the effects of significant exchange rate movements. Rule to remember: When closing dates differ, the effects of significant exchange rate movements between them are adjusted for (IAS 21, paras. 44 to 46).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000081","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.RECLASSIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000081","tested_point":"QST.IAS21.000081","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-reclass"},"references":["IAS 21 §48"],"exercise":{"prompt":{"fr":"","en":"On disposal of a foreign operation, the cumulative translation differences relating to it are reclassified from equity to profit or loss when the gain or loss on disposal is recognised.","es":""},"explanation":{"fr":"","en":"The cumulative exchange differences relating to the operation, recognised in other comprehensive income and in the separate component of equity, are reclassified to profit or loss when the gain or loss on disposal is recognised (IAS 21, para. 48). Trap: leaving the cumulative amount in equity after the disposal. Rule to remember: On disposal of a foreign operation, the cumulative translation differences are reclassified from equity to profit or loss with the gain or loss on disposal.","es":""},"common_error":{"fr":"","en":"Leaving the cumulative amount in equity after the disposal.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000082","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.RECLASSIFICATION"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000082","tested_point":"QST.IAS21.000082","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-reclass"},"references":["IAS 21 §48"],"exercise":{"prompt":{"fr":"","en":"The Vauclair group disposes of the whole of its foreign subsidiary, owned at 100%. The translation reserve stood at {opening_reserve} at the opening date and increased by {period_difference} up to the date of disposal. The gain on disposal before reclassification is {gain_before_reclassification} (case datum). Calculate the amount reclassified to profit or loss and the total gain on disposal.","es":""},"explanation":{"fr":"","en":"Approach: Cumulative amount at the date of disposal: 140,000 + 40,000 = 180,000, fully reclassified to profit or loss (no non-controlling interests). Total gain: 500,000 + 180,000 = 680,000 (IAS 21, para. 48). Trap: leaving the cumulative amount in equity, which would understate the gain on disposal by 180,000. Rule to remember: The cumulative translation differences relating to the operation are reclassified to profit or loss when the gain or loss on disposal is recognised.","es":""},"common_error":{"fr":"","en":"Leaving the cumulative amount in equity after the disposal.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_reserve","value":"140000","unit":"EUR"},{"id":"period_difference","value":"40000","unit":"EUR"},{"id":"gain_before_reclassification","value":"500000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Translation reserve at the opening date","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Translation difference up to disposal","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Gain on disposal before reclassification","es":""},"value":"500000","unit":"EUR"}],"steps":[{"id":"RECLASSIFIED_AMOUNT","label":{"fr":"","en":"Amount reclassified to profit or loss in euros","es":""},"answer":180000,"tolerance":1,"unit":"EUR"},{"id":"TOTAL_GAIN","label":{"fr":"","en":"Total gain on disposal in euros","es":""},"answer":680000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"RECLASSIFIED_AMOUNT","meaning":{"fr":"","en":"Amount reclassified to profit or loss in euros","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Translation reserve at the opening date","es":""},"value":140000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Translation difference up to disposal","es":""},"value":40000,"unit":"EUR"}],"result":180000,"unit":"EUR"},{"step":"TOTAL_GAIN","meaning":{"fr":"","en":"Total gain on disposal in euros","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gain on disposal before reclassification","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amount reclassified to profit or loss in euros","es":""},"value":180000,"unit":"EUR"}],"result":680000,"unit":"EUR"}],"rationale":{"fr":"","en":"The cumulative translation differences relating to the operation are reclassified to profit or loss when the gain or loss on disposal is recognised.","es":""},"references":["REF.IAS21.48"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000085","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.NCI_DERECOGNITION"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000085","tested_point":"QST.IAS21.000085","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-nci"},"references":["IAS 21 §48B"],"exercise":{"prompt":{"fr":"","en":"The Ferrand group disposes of its foreign subsidiary, in which non-controlling interests hold {nci_percentage}. The cumulative translation differences of the subsidiary are {cumulative_reserve}, split according to the percentages held (case convention). Calculate the share derecognised without reclassification and the amount reclassified to profit or loss.","es":""},"explanation":{"fr":"","en":"Approach: 400,000 × 30% = 120,000 attributed to non-controlling interests, derecognised but not reclassified to profit or loss; 400,000 − 120,000 = 280,000 reclassified to profit or loss (IAS 21, para. 48B). Trap: reclassifying the non-controlling interests' share to profit or loss. Rule to remember: On disposal of a subsidiary, the translation differences attributed to non-controlling interests are derecognised but not reclassified to profit or loss.","es":""},"common_error":{"fr":"","en":"Reclassifying the non-controlling interests' share to profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"cumulative_reserve","value":"400000","unit":"EUR"},{"id":"nci_percentage","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Cumulative translation differences of the subsidiary","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Share of non-controlling interests","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"NCI_DERECOGNISED","label":{"fr":"","en":"Share derecognised without reclassification in euros","es":""},"answer":120000,"tolerance":1,"unit":"EUR"},{"id":"RECLASSIFIED_AMOUNT","label":{"fr":"","en":"Amount reclassified to profit or loss in euros","es":""},"answer":280000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"NCI_DERECOGNISED","meaning":{"fr":"","en":"Share derecognised without reclassification in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative translation differences of the subsidiary","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of non-controlling interests","es":""},"value":30,"unit":"PERCENT"}],"result":120000,"unit":"EUR"},{"step":"RECLASSIFIED_AMOUNT","meaning":{"fr":"","en":"Amount reclassified to profit or loss in euros","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative translation differences of the subsidiary","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share derecognised without reclassification in euros","es":""},"value":120000,"unit":"EUR"}],"result":280000,"unit":"EUR"}],"rationale":{"fr":"","en":"On disposal of a subsidiary, the translation differences attributed to non-controlling interests are derecognised but not reclassified to profit or loss.","es":""},"references":["REF.IAS21.48B"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000086","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.PARTIAL_PROPORTIONATE"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000086","tested_point":"QST.IAS21.000086","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-partial"},"references":["IAS 21 §48C"],"exercise":{"prompt":{"fr":"","en":"The Rochelle group sells {disposed_percentage} of its foreign subsidiary but keeps control. The subsidiary's cumulative translation differences are {cumulative_reserve}. Calculate the proportionate share reattributed to non-controlling interests and the balance that stays in the reserve.","es":""},"explanation":{"fr":"","en":"Approach: 500,000 × 20% = 100,000 reattributed to non-controlling interests; 500,000 − 100,000 = 400,000 stay in the reserve. Professional judgement: the method of calculating the proportionate share is not imposed beyond proportionality (IAS 21, para. 48C). Trap: reclassifying the whole cumulative amount on a partial disposal without loss of control. Rule to remember: On a partial disposal of a subsidiary without loss of control, a proportionate share of the cumulative amount is reattributed to non-controlling interests.","es":""},"common_error":{"fr":"","en":"Reclassifying the whole cumulative amount on a partial disposal without loss of control.","es":""},"format":"CALCULATION","placeholders":[{"id":"cumulative_reserve","value":"500000","unit":"EUR"},{"id":"disposed_percentage","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Cumulative translation differences of the subsidiary","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Share of the subsidiary sold","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"REATTRIBUTED_TO_NCI","label":{"fr":"","en":"Proportionate share reattributed to non-controlling interests in euros","es":""},"answer":100000,"tolerance":1,"unit":"EUR"},{"id":"REMAINDER_IN_RESERVE","label":{"fr":"","en":"Balance remaining in the reserve in euros","es":""},"answer":400000,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"REATTRIBUTED_TO_NCI","meaning":{"fr":"","en":"Proportionate share reattributed to non-controlling interests in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative translation differences of the subsidiary","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of the subsidiary sold","es":""},"value":20,"unit":"PERCENT"}],"result":100000,"unit":"EUR"},{"step":"REMAINDER_IN_RESERVE","meaning":{"fr":"","en":"Balance remaining in the reserve in euros","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative translation differences of the subsidiary","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Proportionate share reattributed to non-controlling interests in euros","es":""},"value":100000,"unit":"EUR"}],"result":400000,"unit":"EUR"}],"rationale":{"fr":"","en":"On a partial disposal of a subsidiary without loss of control, a proportionate share of the cumulative amount is reattributed to non-controlling interests.","es":""},"references":["REF.IAS21.48C"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000088","standard_id":"IAS21","concept_ids":["IAS21.DISPOSAL.WRITE_DOWN_NOT_DISPOSAL"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000088","tested_point":"QST.IAS21.000088","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000012","section_id":"rule-writedown"},"references":["IAS 21 §49"],"exercise":{"prompt":{"fr":"","en":"Hérault recognises an impairment on its interest in a foreign subsidiary, with no disposal. The accountant proposes reclassifying part of the cumulative translation differences to profit or loss because of this impairment. What is the consistent position?","es":""},"explanation":{"fr":"","en":"Writing down or depreciating a foreign operation without a disposal is not a partial disposal: no reclassification of the cumulative translation differences is made. Professional judgement: check that no sale or loss of control lies behind the transaction (IAS 21, para. 49). Trap: reclassifying the cumulative differences on an impairment. Rule to remember: A write-down or depreciation of a foreign operation without disposal is not a partial disposal; no reclassification is made.","es":""},"common_error":{"fr":"","en":"Reclassifying the cumulative differences on an impairment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No reclassification: a write-down or depreciation without disposal is not a partial disposal.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A reclassification proportionate to the impairment, because it reduces the value of the interest.","es":""},"correct":false,"feedback":{"fr":"","en":"The reduction in value through impairment is not a partial disposal: it gives rise to no proportionate reclassification of the cumulative translation differences. Rule to remember: A write-down or depreciation of a foreign operation without disposal is not a partial disposal; no reclassification is made (IAS 21, para. 49).","es":""}},{"id":"C","text":{"fr":"","en":"A full reclassification of the cumulative amount, the impairment being treated like a total disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"An impairment is not treated as a disposal, even a total one in value: the cumulative amount stays in equity as long as there is no disposal. Rule to remember: A write-down or depreciation of a foreign operation without disposal is not a partial disposal; no reclassification is made (IAS 21, para. 49).","es":""}},{"id":"D","text":{"fr":"","en":"A reclassification of the period's differences only, the earlier cumulative amount staying in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"No partial reclassification is provided for the period's differences alone: without a disposal, nothing is reclassified, neither the earlier cumulative amount nor the period's differences. Rule to remember: A write-down or depreciation of a foreign operation without disposal is not a partial disposal; no reclassification is made (IAS 21, para. 49).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000090","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.EXCHANGE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000090","tested_point":"QST.IAS21.000090","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":140,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-differences"},"references":["IAS 21 §52"],"exercise":{"prompt":{"fr":"","en":"Which of the following disclosures about exchange differences must the entity provide? More than one answer.","es":""},"explanation":{"fr":"","en":"The entity discloses the amount of exchange differences recognised in profit or loss, excluding financial instruments measured at fair value through profit or loss under IFRS 9, and the net exchange differences in other comprehensive income, accumulated in a separate component of equity, with the reconciliation of its opening and closing balance (IAS 21, para. 52). Trap: omitting the reconciliation of the translation reserve or including instruments at fair value through profit or loss. Rule to remember: The entity discloses exchange differences in profit or loss (excluding instruments at fair value through profit or loss under IFRS 9) and net exchange differences in other comprehensive income, with a reconciliation of the component.","es":""},"common_error":{"fr":"","en":"Omitting the reconciliation of the translation reserve.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of exchange differences recognised in profit or loss, excluding those on financial instruments measured at fair value through profit or loss under IFRS 9.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The reconciliation of the opening and closing balance of that separate component of equity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The amount of exchange differences recognised in profit or loss, including those on instruments measured at fair value through profit or loss under IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"Differences on financial instruments measured at fair value through profit or loss under IFRS 9 are excluded from the amount to disclose; including them distorts the information given. Rule to remember: The entity discloses exchange differences in profit or loss (excluding instruments at fair value through profit or loss under IFRS 9) and net exchange differences in other comprehensive income, with a reconciliation of the component (IAS 21, para. 52).","es":""}},{"id":"D","text":{"fr":"","en":"The net exchange differences recognised in other comprehensive income, accumulated in a separate component of equity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000091","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.PRESENTATION_CURRENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000091","tested_point":"QST.IAS21.000091","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-currencies"},"references":["IAS 21 §53"],"exercise":{"prompt":{"fr":"","en":"When the presentation currency differs from the functional currency, the entity does not have to disclose its functional currency.","es":""},"explanation":{"fr":"","en":"When the presentation currency differs from the functional currency, the entity discloses that fact, the functional currency and the reason for using a different presentation currency (IAS 21, para. 53). Trap: omitting the mention of the functional currency. Rule to remember: When the presentation currency differs from the functional currency, the entity states that fact, the functional currency and the reason for using a different presentation currency.","es":""},"common_error":{"fr":"","en":"Omitting the mention of the functional currency.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000092","standard_id":"IAS21","concept_ids":["IAS21.DISCLOSURE.CHANGE_FUNCTIONAL_CURRENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000092","tested_point":"QST.IAS21.000092","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-change-disclosure"},"references":["IAS 21 §54"],"exercise":{"prompt":{"fr":"","en":"The reporting entity's functional currency changes during the year. What disclosure must it provide?","es":""},"explanation":{"fr":"","en":"On a change in the functional currency of the reporting entity or of a significant foreign operation, the entity discloses that fact and the reason for the change. Professional judgement: the reason must be explained from the underlying conditions (IAS 21, para. 54). Trap: omitting the reasons for the change. Rule to remember: On a change of functional currency, the entity discloses that fact and the reason for the change.","es":""},"common_error":{"fr":"","en":"Omitting the reasons for the change.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the fact of the change, the reason being a matter for management and staying internal.","es":""},"correct":false,"feedback":{"fr":"","en":"The reason is part of the disclosure: stating only the fact of the change omits an item required by the standard. Rule to remember: On a change of functional currency, the entity discloses that fact and the reason for the change (IAS 21, para. 54).","es":""}},{"id":"B","text":{"fr":"","en":"The fact that the functional currency has changed and the reason for the change.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The reason for the change only when it changes the profit or loss for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"No condition linked to the effect on profit or loss is provided: the fact and the reason for the change are disclosed in all cases. Rule to remember: On a change of functional currency, the entity discloses that fact and the reason for the change (IAS 21, para. 54).","es":""}},{"id":"D","text":{"fr":"","en":"The prior-period statements restated in the new functional currency.","es":""},"correct":false,"feedback":{"fr":"","en":"The change is applied prospectively: there is no restatement of prior periods, and this is not the disclosure required. Rule to remember: On a change of functional currency, the entity discloses that fact and the reason for the change (IAS 21, para. 54).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000094","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000094","tested_point":"QST.IAS21.000094","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":140,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-def"},"references":["IAS 21 §8","IAS 21 §8A","IAS 21 §8B"],"exercise":{"prompt":{"fr":"","en":"In assessing whether a currency is exchangeable into another, which statements are correct? More than one answer.","es":""},"explanation":{"fr":"","en":"A currency is exchangeable into another when the entity is able to get the other currency with no more than a normal administrative wait, on a market or through an exchange mechanism where the deal would give rise to enforceable rights and obligations; exchangeability is assessed at the measurement date and for a specified purpose; it is lacking if only an insignificant amount can be obtained (IAS 21, paras. 8, 8A and 8B). Trap: equating non-exchangeability with an unfavourable official rate. Rule to remember: Exchangeability means being able to obtain the currency within a normal administrative delay, at the measurement date and for a specified purpose; an insignificant amount is not enough.","es":""},"common_error":{"fr":"","en":"Equating non-exchangeability with an unfavourable official rate.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A currency is exchangeable if the entity is able to get the other currency with no more than a normal administrative wait, on a market or through an exchange mechanism where the deal would give rise to enforceable rights and obligations.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A currency becomes non-exchangeable as soon as the official rate is unfavourable to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"An unfavourable official rate is not a criterion for non-exchangeability: it comes from being unable to obtain the currency under the conditions described, or only in an insignificant amount. Rule to remember: Exchangeability means being able to obtain the currency within a normal administrative delay, at the measurement date and for a specified purpose; an insignificant amount is not enough (IAS 21, paras. 8, 8A and 8B).","es":""}},{"id":"C","text":{"fr":"","en":"A currency is not exchangeable if the entity can obtain only an insignificant amount of it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Exchangeability is assessed at the measurement date and for a specified purpose.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000096","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.DISCLOSURE"],"dimension":"ANALYSIS","context":"V1_QST.IAS21.000096","tested_point":"QST.IAS21.000096","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-disclosure"},"references":["IAS 21 §57A"],"exercise":{"prompt":{"fr":"","en":"In its notes, Brivon, which has estimated a spot rate because of non-exchangeability, discloses only the nature and financial effects of the non-exchangeability. Which required disclosure is missing?","es":""},"explanation":{"fr":"","en":"When the entity estimates a spot rate because of non-exchangeability, it discloses the nature and financial effects of the non-exchangeability, the spot rate or rates used, the estimation process and the risks to which it is exposed: only the first item appears in Brivon's notes (IAS 21, para. 57A). Trap: omitting the rate used and the estimation approach. Rule to remember: The entity discloses the nature and financial effects of the non-exchangeability, the spot rate or rates used, the estimation process and the risks.","es":""},"common_error":{"fr":"","en":"Omitting the rate used and the estimation approach.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The opinion of an independent expert on the estimated rate.","es":""},"correct":false,"feedback":{"fr":"","en":"No independent expert opinion is required by this provision: the missing disclosure concerns the rates used, the estimation process and the risks. Rule to remember: The entity discloses the nature and financial effects of the non-exchangeability, the spot rate or rates used, the estimation process and the risks (IAS 21, para. 57A).","es":""}},{"id":"B","text":{"fr":"","en":"The method of calculating the monthly average of the rates observed on the parallel market.","es":""},"correct":false,"feedback":{"fr":"","en":"A monthly average on the parallel market is not the disclosure required: the spot rates used, the estimation process and the risks must be disclosed. Rule to remember: The entity discloses the nature and financial effects of the non-exchangeability, the spot rate or rates used, the estimation process and the risks (IAS 21, para. 57A).","es":""}},{"id":"C","text":{"fr":"","en":"The amount of the exchange loss, which would be the only addition required beyond what is already disclosed in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"The exchange loss is not the only addition: the provision also requires the rates used, the estimation process and the risks to which the entity is exposed. Rule to remember: The entity discloses the nature and financial effects of the non-exchangeability, the spot rate or rates used, the estimation process and the risks (IAS 21, para. 57A).","es":""}},{"id":"D","text":{"fr":"","en":"The spot rate or rates used, the estimation process and the risks to which the entity is exposed.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000097","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.EFFECTIVE_DATE_TRANSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000097","tested_point":"QST.IAS21.000097","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-effective"},"references":["IAS 21 §60L"],"exercise":{"prompt":{"fr":"","en":"The 2023 amendments on exchangeability apply to annual periods beginning on or after 1 January 2025, with early application permitted.","es":""},"explanation":{"fr":"","en":"The effective date of the 2023 amendment (Lack of Exchangeability) is annual periods beginning on or after 1 January 2025, with early application permitted, which must be disclosed (IAS 21, para. 60L). Trap: restating comparatives or using a wrong application date. Rule to remember: The 2023 amendments on exchangeability apply to annual periods beginning on or after 1 January 2025; early application is permitted and must be disclosed.","es":""},"common_error":{"fr":"","en":"Using a wrong application date for the 2023 amendments.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000098","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.TRANSACTION_DATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS21.000007","tested_point":"VG.IAS21.000007","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-ifric22"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"Valdor, whose functional currency is the euro, pays a supplier an advance in dollars on 10 February for a machine that will be delivered and recognised in April. Which date determines the rate applicable to the prepayment asset?","es":""},"explanation":{"fr":"","en":"For a foreign currency consideration paid in advance, the date of the transaction used to determine the rate is the date of initial recognition of the non-monetary asset (advance) or non-monetary liability (deferred income) arising from the payment or receipt in advance: here 10 February (IFRIC 22, consensus). Trap: using the date of recognition of the income or asset rather than that of the advance. Rule to remember: The date of the transaction is the date of initial recognition of the non-monetary asset (advance) or liability arising from the payment or receipt in advance.","es":""},"common_error":{"fr":"","en":"Using the date of recognition of the income or asset rather than that of the advance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The date of initial recognition of the prepayment asset, i.e. 10 February.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The date of delivery of the machine in April, when the related asset or expense is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The delivery date comes later: the rate is fixed at initial recognition of the prepayment asset, not at the recognition of the related asset or expense afterwards. Rule to remember: The date of the transaction is the date of initial recognition of the non-monetary asset (advance) or liability arising from the payment or receipt in advance (IFRIC 22, consensus).","es":""}},{"id":"C","text":{"fr":"","en":"The closing date of the year following the payment of the advance.","es":""},"correct":false,"feedback":{"fr":"","en":"The closing rate does not apply to a non-monetary prepayment asset: its transaction date is that of its initial recognition. Rule to remember: The date of the transaction is the date of initial recognition of the non-monetary asset (advance) or liability arising from the payment or receipt in advance (IFRIC 22, consensus).","es":""}},{"id":"D","text":{"fr":"","en":"The date the supplier issues the final invoice.","es":""},"correct":false,"feedback":{"fr":"","en":"The final invoice is not the transaction date used: it is the initial recognition of the prepayment asset that fixes the rate. Rule to remember: The date of the transaction is the date of initial recognition of the non-monetary asset (advance) or liability arising from the payment or receipt in advance (IFRIC 22, consensus).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000099","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.TRANSACTION_DATE"],"dimension":"CALCULATION","context":"V1_VG.IAS21.000007","tested_point":"VG.IAS21.000007","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-ifric22"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"Orval pays an advance of {advance_foreign_amount} at a date when the spot rate is 0.91 euro per 1 dollar. Delivery takes place later, at a rate of 0.95 euro. Calculate the amount in euros of the prepayment asset.","es":""},"explanation":{"fr":"","en":"Approach: 100,000 × 0.91 = 91,000: the rate of the date of initial recognition of the advance applies, not that of delivery (0.95, i.e. 95,000) (IFRIC 22, consensus). Trap: using the rate of the delivery date. Rule to remember: An advance in foreign currency is translated at the rate of the date of its initial recognition.","es":""},"common_error":{"fr":"","en":"Using the date of recognition of the income or asset rather than that of the advance.","es":""},"format":"CALCULATION","placeholders":[{"id":"advance_foreign_amount","value":"100000","unit":"USD"}],"data":[{"label":{"fr":"","en":"Advance in dollars","es":""},"value":"100000","unit":"USD"}],"steps":[{"id":"ADVANCE_FUNCTIONAL_AMOUNT","label":{"fr":"","en":"Prepayment asset in euros","es":""},"answer":91000,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS21.000101","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.MULTIPLE_PAYMENTS"],"dimension":"CALCULATION","context":"V1_QST.IAS21.000101","tested_point":"QST.IAS21.000101","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-multiple"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"Maresq pays two advances in dollars for the same contract: {advance_1} when the spot rate is 0.90 euro per 1 dollar, then {advance_2} when it is 0.93 euro. Calculate the total amount in euros of the prepayment assets.","es":""},"explanation":{"fr":"","en":"Approach: First advance: 100,000 × 0.90 = 90,000. Second advance: 50,000 × 0.93 = 46,500. Total: 136,500. Each payment has its own transaction date (IFRIC 22, consensus). Trap: applying a single rate, for example 0.93, to both advances (which would give 139,500). Rule to remember: Where there are several payments or receipts in advance, each has its own transaction date.","es":""},"common_error":{"fr":"","en":"Applying a single rate to several advances.","es":""},"format":"CALCULATION","placeholders":[{"id":"advance_1","value":"100000","unit":"USD"},{"id":"advance_2","value":"50000","unit":"USD"}],"data":[{"label":{"fr":"","en":"First advance in dollars","es":""},"value":"100000","unit":"USD"},{"label":{"fr":"","en":"Second advance in dollars","es":""},"value":"50000","unit":"USD"}],"steps":[{"id":"ADVANCE_TOTAL","label":{"fr":"","en":"Total prepayment assets in euros","es":""},"answer":136500,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000102","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.SCOPE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000102","tested_point":"QST.IAS21.000102","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-scope"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"Which of these situations falls within the scope of the interpretation on foreign currency advances?","es":""},"explanation":{"fr":"","en":"The interpretation applies to a foreign currency consideration with a prepayment asset or a deferred income liability recognised before the related asset, expense or income (IFRIC 22, section on scope). Trap: applying the interpretation to a receivable already recognised. Rule to remember: The interpretation covers a foreign currency consideration with a prepayment asset or deferred income liability recognised before the related asset, expense or income.","es":""},"common_error":{"fr":"","en":"Applying the interpretation to a monetary item.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A company holds a receivable in dollars arising from a sale already recognised as income at the closing date.","es":""},"correct":false,"feedback":{"fr":"","en":"A receivable arising from a sale already recognised is a monetary item, outside the scope: the interpretation covers non-monetary assets or liabilities recognised before the related asset, expense or income. Rule to remember: The interpretation covers a foreign currency consideration with a prepayment asset or deferred income liability recognised before the related asset, expense or income (IFRIC 22, section on scope).","es":""}},{"id":"B","text":{"fr":"","en":"A company receives an advance in dollars and recognises a deferred income liability before the related income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A company pays in dollars, on delivery, for a machine already received and recognised in its fixed assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Paying for a machine already recognised creates no prepayment asset and no deferred income liability recognised before the asset: the situation is outside the scope. Rule to remember: The interpretation covers a foreign currency consideration with a prepayment asset or deferred income liability recognised before the related asset, expense or income (IFRIC 22, section on scope).","es":""}},{"id":"D","text":{"fr":"","en":"A company enters into a forward contract to sell dollars to hedge a cash balance held in foreign currency.","es":""},"correct":false,"feedback":{"fr":"","en":"A hedging forward contract is a financial instrument, with no advance payment for goods or services: the situation is outside the scope of the interpretation. Rule to remember: The interpretation covers a foreign currency consideration with a prepayment asset or deferred income liability recognised before the related asset, expense or income (IFRIC 22, section on scope).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000103","standard_id":"IAS21","concept_ids":["IAS21.IFRIC22.EFFECTIVE_DATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000103","tested_point":"QST.IAS21.000103","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000004","section_id":"rule-effective"},"references":["IFRIC 22"],"exercise":{"prompt":{"fr":"","en":"The interpretation on foreign currency advances applies to annual periods beginning on or after 1 January 2019, with early application permitted.","es":""},"explanation":{"fr":"","en":"The interpretation on foreign currency advances applies to annual periods beginning on or after 1 January 2018, with early application permitted: the 2019 date is wrong (IFRIC 22, section on scope). Trap: using a wrong application date. Rule to remember: The interpretation applies to annual periods beginning on or after 1 January 2018; early application is permitted.","es":""},"common_error":{"fr":"","en":"Using a wrong application date.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000104","standard_id":"IAS21","concept_ids":["IAS21.INTERACTIONS.IFRS9"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000104","tested_point":"QST.IAS21.000104","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-differences"},"references":["IAS 21 §4","IAS 21 §52"],"exercise":{"prompt":{"fr":"","en":"Brannec holds a forward exchange contract within the scope of IFRS 9, measured at fair value through profit or loss. What should be said about this contract under IAS 21?","es":""},"explanation":{"fr":"","en":"A foreign currency derivative within IFRS 9 is excluded from the scope of IAS 21, and exchange differences on financial instruments measured at fair value through profit or loss under IFRS 9 are excluded from the amount of exchange differences in profit or loss to be disclosed (IAS 21, paras. 4 and 52). Trap: applying IAS 21 to a financial instrument measured under IFRS 9. Rule to remember: Foreign currency derivatives within IFRS 9 are excluded from the scope of IAS 21; instruments at fair value through profit or loss are excluded from the amount of differences to disclose.","es":""},"common_error":{"fr":"","en":"Applying IAS 21 to a financial instrument measured under IFRS 9.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It falls under IAS 21 for its measurement, IFRS 9 dealing only with its presentation in the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 deals with the measurement of this instrument, not only its presentation: the exclusion from the scope of IAS 21 covers foreign currency derivatives that fall under IFRS 9. Rule to remember: Foreign currency derivatives within IFRS 9 are excluded from the scope of IAS 21; instruments at fair value through profit or loss are excluded from the amount of differences to disclose (IAS 21, paras. 4 and 52).","es":""}},{"id":"B","text":{"fr":"","en":"It is excluded from the scope of IAS 21, but its exchange differences are still added to the amount of differences in profit or loss to be disclosed.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure of exchange differences in profit or loss excludes financial instruments measured at fair value through profit or loss under IFRS 9: their differences are not added to it. Rule to remember: Foreign currency derivatives within IFRS 9 are excluded from the scope of IAS 21; instruments at fair value through profit or loss are excluded from the amount of differences to disclose (IAS 21, paras. 4 and 52).","es":""}},{"id":"C","text":{"fr":"","en":"It is excluded from the scope of IAS 21, and its differences are also excluded from the amount of exchange differences in profit or loss to be disclosed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It falls under IAS 21, like every foreign currency derivative, whichever standard it depends on.","es":""},"correct":false,"feedback":{"fr":"","en":"Not every foreign currency derivative falls under IAS 21: those within IFRS 9 are excluded; only the others remain in scope. Rule to remember: Foreign currency derivatives within IFRS 9 are excluded from the scope of IAS 21; instruments at fair value through profit or loss are excluded from the amount of differences to disclose (IAS 21, paras. 4 and 52).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000105","standard_id":"IAS21","concept_ids":["IAS21.INTERACTIONS.IAS12"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000105","tested_point":"QST.IAS21.000105","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000015","section_id":"rule-tax"},"references":["IAS 21 §50"],"exercise":{"prompt":{"fr":"","en":"The tax effects of exchange differences on foreign currency transactions and of translating a foreign operation are dealt with under IAS 12.","es":""},"explanation":{"fr":"","en":"The standard on exchange rates refers to IAS 12 for the tax effects of exchange differences on foreign currency transactions and of translating a foreign operation, including any deferred tax (IAS 21, para. 50). Trap: forgetting deferred tax on translation differences. Rule to remember: The tax effects of exchange differences and of translating a foreign operation are dealt with under IAS 12.","es":""},"common_error":{"fr":"","en":"Forgetting deferred tax on translation differences.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000106","standard_id":"IAS21","concept_ids":["IAS21.INTERACTIONS.IFRS10"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000106","tested_point":"QST.IAS21.000106","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-links"},"references":["IAS 21 §48A","IAS 21 §48B"],"exercise":{"prompt":{"fr":"","en":"Tavel loses control of a foreign subsidiary, control being assessed under IFRS 10. How does IAS 21 interact with this loss of control?","es":""},"explanation":{"fr":"","en":"The loss of control of a subsidiary involving a foreign operation, assessed under IFRS 10, is treated as a disposal under IAS 21, even if an interest is retained; on disposal of a subsidiary, the translation differences attributed to non-controlling interests are derecognised but not reclassified to profit or loss (IAS 21, paras. 48A and 48B). Trap: treating the loss of control without reference to IFRS 10, or without applying the IAS 21 disposal rule. Rule to remember: The loss of control involving a foreign operation is treated as a disposal; the share of non-controlling interests is derecognised without reclassification.","es":""},"common_error":{"fr":"","en":"Treating the loss of control without reference to IFRS 10.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 21 is not concerned by this transaction, the loss of control being dealt with by IFRS 10 and its own requirements.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 10 assesses control, but IAS 21 deals with its consequences for translation differences: the loss of control involving a foreign operation is treated as a disposal. Rule to remember: The loss of control involving a foreign operation is treated as a disposal; the share of non-controlling interests is derecognised without reclassification (IAS 21, paras. 48A and 48B).","es":""}},{"id":"B","text":{"fr":"","en":"The loss of control is a disposal, and the share of non-controlling interests is also reclassified to profit or loss with the rest.","es":""},"correct":false,"feedback":{"fr":"","en":"The share of differences attributed to non-controlling interests is derecognised but not reclassified to profit or loss; reclassifying it distorts the disposal rule. Rule to remember: The loss of control involving a foreign operation is treated as a disposal; the share of non-controlling interests is derecognised without reclassification (IAS 21, paras. 48A and 48B).","es":""}},{"id":"C","text":{"fr":"","en":"The cumulative translation differences stay in equity as long as the interest retained in the former subsidiary is not sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping an interest does not prevent a disposal: the loss of control is treated as a disposal even if an interest is retained. Rule to remember: The loss of control involving a foreign operation is treated as a disposal; the share of non-controlling interests is derecognised without reclassification (IAS 21, paras. 48A and 48B).","es":""}},{"id":"D","text":{"fr":"","en":"The loss of control is a disposal; the share of non-controlling interests is derecognised, without reclassification.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000107","standard_id":"IAS21","concept_ids":["IAS21.INTERACTIONS.IAS29"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS21.000107","tested_point":"QST.IAS21.000107","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000013","section_id":"rule-link"},"references":["IAS 21 §42","IAS 21 §43"],"exercise":{"prompt":{"fr":"","en":"For an operation whose functional currency is that of a hyperinflationary economy, amounts are restated under IAS 29 before being translated at the most recent closing rate.","es":""},"explanation":{"fr":"","en":"For an operation whose functional currency is that of a hyperinflationary economy, all amounts are translated at the most recent closing rate, after prior restatement under IAS 29 (IAS 21, paras. 42 and 43). Trap: translating a hyperinflationary operation without prior restatement. Rule to remember: A hyperinflationary operation is first restated under IAS 29, then its amounts are translated at the most recent closing rate.","es":""},"common_error":{"fr":"","en":"Translating a hyperinflationary operation without prior restatement.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000108","standard_id":"IAS21","concept_ids":["IAS21.INTERACTIONS.IFRS3"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000108","tested_point":"QST.IAS21.000108","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000011","section_id":"rule-links"},"references":["IAS 21 §47"],"exercise":{"prompt":{"fr":"","en":"The Moreau group, whose presentation currency is the euro, acquires an American subsidiary. The goodwill, determined under IFRS 3, is 2,000,000 dollars. How does IAS 21 treat it?","es":""},"explanation":{"fr":"","en":"Goodwill and fair value adjustments arising on the acquisition of a foreign operation are assets and liabilities of that operation, expressed in its functional currency and translated at the closing rate, the amount in dollars having been determined under IFRS 3 (IAS 21, para. 47). Trap: treating the goodwill of a foreign operation as an asset of the reporting entity. Rule to remember: Goodwill of a foreign operation is an asset of that operation, expressed in its functional currency and translated at the closing rate.","es":""},"common_error":{"fr":"","en":"Treating the goodwill of a foreign operation as an asset of the reporting entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an asset of the foreign operation, expressed in dollars and translated at the closing rate.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As an asset of the parent, expressed in euros, at the rate of the date the subsidiary was acquired.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill of a foreign operation is not a parent's asset in euros at the historical rate: it is treated as an asset of the foreign operation, translated at the closing rate. Rule to remember: Goodwill of a foreign operation is an asset of that operation, expressed in its functional currency and translated at the closing rate (IAS 21, para. 47).","es":""}},{"id":"C","text":{"fr":"","en":"As a non-monetary asset of the parent, translated at the average rate for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The average rate is an approximation for income and expenses; goodwill, an asset of the foreign operation, is translated at the closing rate. Rule to remember: Goodwill of a foreign operation is an asset of that operation, expressed in its functional currency and translated at the closing rate (IAS 21, para. 47).","es":""}},{"id":"D","text":{"fr":"","en":"As a monetary item of the subsidiary, the exchange difference of which goes to profit or loss at each closing date.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is not a monetary item revalued through profit or loss: IAS 21 treats it as an asset of the foreign operation, translated at the closing rate. Rule to remember: Goodwill of a foreign operation is an asset of that operation, expressed in its functional currency and translated at the closing rate (IAS 21, para. 47).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000109","standard_id":"IAS21","concept_ids":["IAS21.SCOPE.HEDGE_ACCOUNTING_EXCLUSION","IAS21.INTERACTIONS.IFRS9"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000109","tested_point":"QST.IAS21.000109","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000001","section_id":"rule-exclusions"},"references":["IAS 21 §27"],"exercise":{"prompt":{"fr":"","en":"Ardenne, whose functional currency is the euro, has a dollar borrowing (a monetary item). Case data: it designated the borrowing as the hedging instrument of the foreign currency risk on future dollar purchases, in a cash flow hedge that meets the IFRS 9 conditions; at the closing date, the hedge is fully effective. How is the exchange difference on the borrowing treated?","es":""},"explanation":{"fr":"","en":"IAS 21 refers to IFRS 9 for hedge accounting for foreign currency items: IFRS 9 may require some exchange differences to be treated differently from IAS 21. This is the case of a monetary item designated as a hedging instrument in a cash flow hedge: the effective portion of its exchange difference is recognised initially in other comprehensive income (IAS 21, para. 27). The designation and the qualification of the hedging relationship are case data here. Trap: mechanically applying the IAS 21 recognition in profit or loss to a hedging instrument. Rule to remember: hedging of foreign currency items falls within IFRS 9, which may change the IAS 21 treatment of exchange differences.","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the exchange difference on an instrument designated in a cash flow hedge.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss for the period, like any exchange difference on a monetary item, the hedge designation having no effect.","es":""},"correct":false,"feedback":{"fr":"","en":"The general IAS 21 rule does not apply as such: for an instrument designated in a cash flow hedge, IFRS 9 has the effective portion recognised first in other comprehensive income (IAS 21, para. 27).","es":""}},{"id":"B","text":{"fr":"","en":"Under IFRS 9 hedge accounting, to which IAS 21 refers: the effective portion goes first to other comprehensive income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Under hedging rules specific to IAS 21, which require the exchange difference to be deferred until the borrowing is repaid.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 sets no hedging rules: it refers to IFRS 9 for hedge accounting for foreign currency items (IAS 21, para. 27).","es":""}},{"id":"D","text":{"fr":"","en":"It is not recognised: a borrowing designated as a hedging instrument is no longer translated at the closing rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The designation does not remove the exchange difference: its treatment follows IFRS 9 hedge accounting, effective portion first in other comprehensive income (IAS 21, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS21.000110","standard_id":"IAS21","concept_ids":["IAS21.EXCHANGEABILITY.DISCLOSURE"],"dimension":"APPLICATION","context":"V1_QST.IAS21.000110","tested_point":"QST.IAS21.000110","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS21","lesson_id":"LS.IAS21.000014","section_id":"rule-disclosure"},"references":["IAS 21 §57B","IAS 21 §57A"],"exercise":{"prompt":{"fr":"","en":"Brivon estimated a spot exchange rate because the currency of one of its foreign operations is not exchangeable. When drafting the note, its controller considers that the list of disclosures in para. 57A is self-sufficient and that no other IAS 21 requirement specifies how to apply it. What should he be told?","es":""},"explanation":{"fr":"","en":"When an entity estimates a spot exchange rate because a currency is not exchangeable, it provides the disclosures of para. 57A: nature and financial effects of the lack of exchangeability, spot rates used, estimation process and risks to which it is exposed. Para. 57B refers to paras. A18 to A20, which specify how to apply this objective: level of detail needed, list of information, and information specific to a foreign operation whose currency is not exchangeable (IAS 21, paras. 57A and 57B). The detail of paras. A18 to A20 is not reproduced here. Trap: stopping at the list in para. 57A without consulting the application requirements. Rule to remember: the disclosure objective of para. 57A applies with the details of paras. A18 to A20 (para. 57B).","es":""},"common_error":{"fr":"","en":"Drafting the note from the list in para. 57A alone, without the details of paras. A18 to A20.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Para. 57B refers to paras. A18 to A20, which specify how to apply para. 57A, including for a foreign operation.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"He is right: the objective of para. 57A is met as soon as the entity discloses the spot rate used and the nature of the lack of exchangeability.","es":""},"correct":false,"feedback":{"fr":"","en":"The objective of para. 57A also covers the estimation process and the risks, and para. 57B refers to paras. A18 to A20 for its application (IAS 21, paras. 57A and 57B).","es":""}},{"id":"C","text":{"fr":"","en":"The application guidance is in IFRS 7, as a lack of exchangeability is treated as a liquidity risk of financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"The application details of these disclosures are in IAS 21 itself, in paras. A18 to A20 to which para. 57B refers (IAS 21, para. 57B).","es":""}},{"id":"D","text":{"fr":"","en":"Nothing is required for a foreign operation: only the entity's own transactions are covered.","es":""},"correct":false,"feedback":{"fr":"","en":"Paras. A18 to A20, to which para. 57B refers, specifically cover information specific to a foreign operation whose currency is not exchangeable (IAS 21, para. 57B).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS21.000001":"IAS 21: purpose, scope and basic vocabulary — Understand: three situations, one standard","LX.IAS21.000002":"IAS 21: purpose, scope and basic vocabulary — The rule: what the standard covers","LX.IAS21.000003":"IAS 21: purpose, scope and basic vocabulary — The words to know","LX.IAS21.000004":"IAS 21: purpose, scope and basic vocabulary — Simple example: Vaterne and its three situations","LX.IAS21.000005":"IAS 21: purpose, scope and basic vocabulary — The words to know","LX.IAS21.000006":"IAS 21: purpose, scope and basic vocabulary — What is excluded: derivatives, hedging and cash flows","LX.IAS21.000007":"IAS 21: purpose, scope and basic vocabulary — What is excluded: derivatives, hedging and cash flows","LX.IAS21.000008":"IAS 21: purpose, scope and basic vocabulary — The words to know","LX.IAS21.000009":"Spot rate, closing rate, exchange difference and monetary items — The rule: spot rate and closing rate","LX.IAS21.000010":"Spot rate, closing rate, exchange difference and monetary items — The rule: spot rate and closing rate","LX.IAS21.000011":"Spot rate, closing rate, exchange difference and monetary items — Numerical example: one thousand dollars, two rates","LX.IAS21.000012":"Spot rate, closing rate, exchange difference and monetary items — The rule: monetary and non-monetary items","LX.IAS21.000013":"Spot rate, closing rate, exchange difference and monetary items — The rule: monetary and non-monetary items","LX.IAS21.000014":"Spot rate, closing rate, exchange difference and monetary items — The rule: what is an exchange difference?","LX.IAS21.000015":"Spot rate, closing rate, exchange difference and monetary items — The rule: monetary and non-monetary items","LX.IAS21.000016":"The functional currency: indicators and determination — The rule: the secondary factors","LX.IAS21.000017":"The functional currency: indicators and determination — The rule: an overall determination, stable over time","LX.IAS21.000018":"The functional currency: indicators and determination — The rule: the secondary factors","LX.IAS21.000019":"The functional currency: indicators and determination — The rule: the secondary factors","LX.IAS21.000020":"The functional currency: indicators and determination — The rule: an overall determination, stable over time","LX.IAS21.000021":"The functional currency: indicators and determination — The rule: an overall determination, stable over time","LX.IAS21.000022":"The functional currency: indicators and determination — Mixed indicators: management judgement","LX.IAS21.000023":"The functional currency: indicators and determination — Factors specific to a foreign operation","LX.IAS21.000024":"The functional currency: indicators and determination — Professional judgement: documenting the functional currency","LX.IAS21.000025":"Recognising a foreign currency transaction, advances included — The rule: the spot rate at the transaction date","LX.IAS21.000026":"Recognising a foreign currency transaction, advances included — Numerical example: a purchase in dollars and a month of sales","LX.IAS21.000027":"Recognising a foreign currency transaction, advances included — Entry: the purchase of goods in dollars","LX.IAS21.000028":"Recognising a foreign currency transaction, advances included — The rule: what is the transaction date?","LX.IAS21.000029":"Recognising a foreign currency transaction, advances included — The rule: an average rate as an approximation","LX.IAS21.000030":"Recognising a foreign currency transaction, advances included — Numerical example: a purchase in dollars and a month of sales","LX.IAS21.000031":"Recognising a foreign currency transaction, advances included — Several payments in advance","LX.IAS21.000032":"Recognising a foreign currency transaction, advances included — Numerical example: an advance then delivery","LX.IAS21.000033":"Recognising a foreign currency transaction, advances included — The scope of IFRIC 22","LX.IAS21.000034":"Recognising a foreign currency transaction, advances included — Several payments in advance","LX.IAS21.000035":"Recognising a foreign currency transaction, advances included — Application date of IFRIC 22","LX.IAS21.000036":"At each reporting date: which rate for which item? — The rule: monetary items at the closing rate","LX.IAS21.000037":"At each reporting date: which rate for which item? — The rule: non-monetary items at historical cost","LX.IAS21.000038":"At each reporting date: which rate for which item? — Approach: three questions for each item","LX.IAS21.000039":"At each reporting date: which rate for which item? — Numerical example: three Vaterne items at 31 December","LX.IAS21.000040":"At each reporting date: which rate for which item? — Numerical example: three Vaterne items at 31 December","LX.IAS21.000041":"At each reporting date: which rate for which item? — Approach: three questions for each item","LX.IAS21.000042":"At each reporting date: which rate for which item? — Approach: three questions for each item","LX.IAS21.000043":"At each reporting date: which rate for which item? — Numerical example: inventories and the lower of two amounts","LX.IAS21.000044":"At each reporting date: which rate for which item? — Comparing two amounts: the lower of two values","LX.IAS21.000045":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: differences on monetary items go to profit or loss","LX.IAS21.000046":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: differences on monetary items go to profit or loss","LX.IAS21.000047":"Where to record the exchange difference: profit or loss or other comprehensive income — Entries: retranslation at the reporting date then settlement","LX.IAS21.000048":"Where to record the exchange difference: profit or loss or other comprehensive income — Entries: retranslation at the reporting date then settlement","LX.IAS21.000049":"Where to record the exchange difference: profit or loss or other comprehensive income — Numerical example: from the reporting date to settlement of a debt","LX.IAS21.000050":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: no difference for a non-monetary item at cost","LX.IAS21.000051":"Where to record the exchange difference: profit or loss or other comprehensive income — Numerical example: a revaluation in foreign currency and its exchange component","LX.IAS21.000052":"Where to record the exchange difference: profit or loss or other comprehensive income — Entry: the revaluation of the land","LX.IAS21.000053":"Where to record the exchange difference: profit or loss or other comprehensive income — Understand: is a change in rate a gain, a loss, or something else?","LX.IAS21.000054":"The net investment in a foreign operation — The rule: what is the net investment?","LX.IAS21.000055":"The net investment in a foreign operation — The rule: profit or loss in separate statements, other comprehensive income on consolidation","LX.IAS21.000056":"The net investment in a foreign operation — Numerical example: a parent's loan to its US subsidiary","LX.IAS21.000057":"The net investment in a foreign operation — Entries: separate accounts, then consolidation","LX.IAS21.000058":"The net investment in a foreign operation — The rule: profit or loss in separate statements, other comprehensive income on consolidation","LX.IAS21.000059":"The net investment in a foreign operation — In which currency is the item denominated?","LX.IAS21.000060":"The net investment in a foreign operation — In which currency is the item denominated?","LX.IAS21.000061":"Change of functional currency — The rule: a change only if the underlying conditions change","LX.IAS21.000062":"Change of functional currency — The rule: from the date of the change","LX.IAS21.000063":"Change of functional currency — Translating balances at the date of the change","LX.IAS21.000064":"Change of functional currency — Translating balances at the date of the change","LX.IAS21.000065":"Change of functional currency — Numerical example: a machine after the change of currency","LX.IAS21.000066":"Change of functional currency — Simple example: Tavion moves from the Swiss franc to the dollar","LX.IAS21.000067":"Translating into a presentation currency: the rates to use — The rule: the presentation currency is a choice","LX.IAS21.000068":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","LX.IAS21.000069":"Translating into a presentation currency: the rates to use — Numerical example: the subsidiary Orsane translated into euros","LX.IAS21.000070":"Translating into a presentation currency: the rates to use — Numerical example: the subsidiary Orsane translated into euros","LX.IAS21.000071":"Translating into a presentation currency: the rates to use — The rule: the average rate as a simplification","LX.IAS21.000072":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","LX.IAS21.000073":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","LX.IAS21.000074":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","LX.IAS21.000075":"The translation difference and the translation reserve — The rule: other comprehensive income, then a separate reserve","LX.IAS21.000076":"The translation difference and the translation reserve — The rule: other comprehensive income, then a separate reserve","LX.IAS21.000077":"The translation difference and the translation reserve — Numerical example: Orsane's translation difference","LX.IAS21.000078":"The translation difference and the translation reserve — Numerical example: Orsane's translation difference","LX.IAS21.000079":"The translation difference and the translation reserve — Entry: the translation difference in other comprehensive income","LX.IAS21.000080":"The translation difference and the translation reserve — The rule: other comprehensive income, then a separate reserve","LX.IAS21.000081":"The translation difference and the translation reserve — When the subsidiary is not wholly owned","LX.IAS21.000082":"The translation difference and the translation reserve — When the subsidiary is not wholly owned","LX.IAS21.000083":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — The rule: goodwill and fair value adjustments at the closing rate","LX.IAS21.000084":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — The rule: goodwill and fair value adjustments at the closing rate","LX.IAS21.000085":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Numerical example: Orsane's goodwill","LX.IAS21.000086":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Entry: the translation difference on goodwill","LX.IAS21.000087":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Intragroup monetary balances","LX.IAS21.000088":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Points of attention","LX.IAS21.000089":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Links with IFRS 3 and IFRS 10","LX.IAS21.000090":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Links with IFRS 3 and IFRS 10","LX.IAS21.000091":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — The rule: reclassify the accumulated amount to profit or loss on disposal","LX.IAS21.000092":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — The rule: reclassify the accumulated amount to profit or loss on disposal","LX.IAS21.000093":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — Numerical example: the sale of Orsane","LX.IAS21.000094":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — Entry: the reclassification of the translation reserve","LX.IAS21.000095":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — Numerical example: a proportionate partial disposal","LX.IAS21.000096":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — The share of non-controlling interests","LX.IAS21.000097":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — A write-down is not a disposal","LX.IAS21.000098":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — Professional judgement: qualifying the reduction in interest","LX.IAS21.000099":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — Cases treated as a disposal","LX.IAS21.000100":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — Professional judgement: qualifying the reduction in interest","LX.IAS21.000101":"Hyperinflation: restate, then translate — The rule: all amounts at the latest closing rate","LX.IAS21.000102":"Hyperinflation: restate, then translate — The link with IAS 29: the order of operations","LX.IAS21.000103":"Hyperinflation: restate, then translate — Numerical example: a restated amount then translated","LX.IAS21.000104":"Hyperinflation: restate, then translate — Translation differences accumulated before hyperinflation","LX.IAS21.000105":"Hyperinflation: restate, then translate — Professional judgement: identifying the switch and its effects","LX.IAS21.000106":"When a currency is not exchangeable — The rule: what is an exchangeable currency?","LX.IAS21.000107":"When a currency is not exchangeable — The rule: what is an exchangeable currency?","LX.IAS21.000108":"When a currency is not exchangeable — Simple example: two currencies, two situations","LX.IAS21.000109":"When a currency is not exchangeable — Numerical example: the effect of an estimated rate","LX.IAS21.000110":"When a currency is not exchangeable — Estimating the spot rate","LX.IAS21.000111":"When a currency is not exchangeable — The disclosures","LX.IAS21.000112":"When a currency is not exchangeable — Application date and transition","LX.IAS21.000113":"When a currency is not exchangeable — Professional judgement: assessing and estimating","LX.IAS21.000114":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: differences in profit or loss, differences in other comprehensive income and reconciliation","LX.IAS21.000115":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: differences in profit or loss, differences in other comprehensive income and reconciliation","LX.IAS21.000116":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — Numerical example: reconciling the translation reserve","LX.IAS21.000117":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: the tax on exchange differences belongs to IAS 12","LX.IAS21.000118":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: the tax on exchange differences belongs to IAS 12","LX.IAS21.000119":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — Points of attention","LX.IAS21.000120":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — Disclosing a change of functional currency","LX.IAS21.000121":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — Convenience translation","LX.IAS21.000122":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: the tax on exchange differences belongs to IAS 12","LX.IAS21.000123":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: presentation currency different from the functional currency","LX.IAS21.000124":"IAS 21: purpose, scope and basic vocabulary — What is excluded: derivatives, hedging and cash flows","LX.IAS21.000125":"Change of functional currency — The rule: from the date of the change","QST.IAS21.000001":"IAS 21: purpose, scope and basic vocabulary — Understand: three situations, one standard","QST.IAS21.000002":"IAS 21: purpose, scope and basic vocabulary — The rule: what the standard covers","QST.IAS21.000003":"IAS 21: purpose, scope and basic vocabulary — The rule: what the standard covers","QST.IAS21.000004":"IAS 21: purpose, scope and basic vocabulary — What is excluded: derivatives, hedging and cash flows","QST.IAS21.000005":"IAS 21: purpose, scope and basic vocabulary — What is excluded: derivatives, hedging and cash flows","QST.IAS21.000006":"IAS 21: purpose, scope and basic vocabulary — What is excluded: derivatives, hedging and cash flows","QST.IAS21.000007":"IAS 21: purpose, scope and basic vocabulary — The words to know","QST.IAS21.000008":"IAS 21: purpose, scope and basic vocabulary — The words to know","QST.IAS21.000009":"Spot rate, closing rate, exchange difference and monetary items — The rule: spot rate and closing rate","QST.IAS21.000010":"Spot rate, closing rate, exchange difference and monetary items — The rule: spot rate and closing rate","QST.IAS21.000011":"Spot rate, closing rate, exchange difference and monetary items — The rule: spot rate and closing rate","QST.IAS21.000012":"Spot rate, closing rate, exchange difference and monetary items — The rule: spot rate and closing rate","QST.IAS21.000013":"Spot rate, closing rate, exchange difference and monetary items — The rule: what is an exchange difference?","QST.IAS21.000014":"Spot rate, closing rate, exchange difference and monetary items — The rule: what is an exchange difference?","QST.IAS21.000015":"Spot rate, closing rate, exchange difference and monetary items — The rule: monetary and non-monetary items","QST.IAS21.000017":"IAS 21: purpose, scope and basic vocabulary — The words to know","QST.IAS21.000018":"IAS 21: purpose, scope and basic vocabulary — The words to know","QST.IAS21.000019":"The functional currency: indicators and determination — The rule: the primary indicators","QST.IAS21.000020":"The functional currency: indicators and determination — The rule: the primary indicators","QST.IAS21.000021":"The functional currency: indicators and determination — The rule: the secondary factors","QST.IAS21.000023":"The functional currency: indicators and determination — Factors specific to a foreign operation","QST.IAS21.000024":"The functional currency: indicators and determination — The rule: an overall determination, stable over time","QST.IAS21.000026":"Recognising a foreign currency transaction, advances included — The rule: the spot rate at the transaction date","QST.IAS21.000027":"Recognising a foreign currency transaction, advances included — The rule: the spot rate at the transaction date","QST.IAS21.000029":"Recognising a foreign currency transaction, advances included — The rule: the spot rate at the transaction date","QST.IAS21.000030":"Recognising a foreign currency transaction, advances included — The rule: the spot rate at the transaction date","QST.IAS21.000032":"Recognising a foreign currency transaction, advances included — The rule: what is the transaction date?","QST.IAS21.000033":"Recognising a foreign currency transaction, advances included — The rule: what is the transaction date?","QST.IAS21.000034":"Recognising a foreign currency transaction, advances included — The rule: an average rate as an approximation","QST.IAS21.000035":"At each reporting date: which rate for which item? — The rule: monetary items at the closing rate","QST.IAS21.000036":"At each reporting date: which rate for which item? — The rule: monetary items at the closing rate","QST.IAS21.000038":"At each reporting date: which rate for which item? — The rule: non-monetary items at historical cost","QST.IAS21.000039":"At each reporting date: which rate for which item? — The rule: non-monetary items at historical cost","QST.IAS21.000041":"At each reporting date: which rate for which item? — The rule: non-monetary items at fair value","QST.IAS21.000042":"At each reporting date: which rate for which item? — The rule: non-monetary items at fair value","QST.IAS21.000044":"At each reporting date: which rate for which item? — Comparing two amounts: the lower of two values","QST.IAS21.000045":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: differences on monetary items go to profit or loss","QST.IAS21.000046":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: differences on monetary items go to profit or loss","QST.IAS21.000048":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: no difference for a non-monetary item at cost","QST.IAS21.000049":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: the exchange component follows the revaluation line","QST.IAS21.000050":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: the exchange component follows the revaluation line","QST.IAS21.000051":"Where to record the exchange difference: profit or loss or other comprehensive income — The rule: the exchange component follows the revaluation line","QST.IAS21.000054":"The net investment in a foreign operation — In which currency is the item denominated?","QST.IAS21.000055":"Change of functional currency — The rule: a change only if the underlying conditions change","QST.IAS21.000056":"Change of functional currency — The rule: from the date of the change","QST.IAS21.000057":"Change of functional currency — Translating balances at the date of the change","QST.IAS21.000058":"Translating into a presentation currency: the rates to use — The rule: the presentation currency is a choice","QST.IAS21.000059":"Translating into a presentation currency: the rates to use — The rule: the presentation currency is a choice","QST.IAS21.000060":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","QST.IAS21.000061":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","QST.IAS21.000062":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","QST.IAS21.000063":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","QST.IAS21.000064":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","QST.IAS21.000065":"Translating into a presentation currency: the rates to use — The rule: three rates for three families of items","QST.IAS21.000066":"Translating into a presentation currency: the rates to use — The rule: the average rate as a simplification","QST.IAS21.000067":"Translating into a presentation currency: the rates to use — The rule: the average rate as a simplification","QST.IAS21.000069":"The translation difference and the translation reserve — The rule: other comprehensive income, then a separate reserve","QST.IAS21.000070":"The translation difference and the translation reserve — The rule: other comprehensive income, then a separate reserve","QST.IAS21.000072":"The translation difference and the translation reserve — When the subsidiary is not wholly owned","QST.IAS21.000073":"Hyperinflation: restate, then translate — The rule: all amounts at the latest closing rate","QST.IAS21.000074":"Hyperinflation: restate, then translate — The link with IAS 29: the order of operations","QST.IAS21.000076":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — The rule: goodwill and fair value adjustments at the closing rate","QST.IAS21.000077":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — The rule: goodwill and fair value adjustments at the closing rate","QST.IAS21.000080":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Different reporting dates","QST.IAS21.000081":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — The rule: reclassify the accumulated amount to profit or loss on disposal","QST.IAS21.000082":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — The rule: reclassify the accumulated amount to profit or loss on disposal","QST.IAS21.000085":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — The share of non-controlling interests","QST.IAS21.000086":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — Partial disposal","QST.IAS21.000088":"Disposal of a foreign operation: reclassifying the reserve to profit or loss — A write-down is not a disposal","QST.IAS21.000090":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: differences in profit or loss, differences in other comprehensive income and reconciliation","QST.IAS21.000091":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: presentation currency different from the functional currency","QST.IAS21.000092":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — Disclosing a change of functional currency","QST.IAS21.000094":"When a currency is not exchangeable — The rule: what is an exchangeable currency?","QST.IAS21.000096":"When a currency is not exchangeable — The disclosures","QST.IAS21.000097":"When a currency is not exchangeable — Application date and transition","QST.IAS21.000098":"Recognising a foreign currency transaction, advances included — The rule: an advance in foreign currency has its own transaction date","QST.IAS21.000099":"Recognising a foreign currency transaction, advances included — The rule: an advance in foreign currency has its own transaction date","QST.IAS21.000101":"Recognising a foreign currency transaction, advances included — Several payments in advance","QST.IAS21.000102":"Recognising a foreign currency transaction, advances included — The scope of IFRIC 22","QST.IAS21.000103":"Recognising a foreign currency transaction, advances included — Application date of IFRIC 22","QST.IAS21.000104":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: differences in profit or loss, differences in other comprehensive income and reconciliation","QST.IAS21.000105":"Disclosures, tax and boundaries (IFRS 9, IAS 12) — The rule: the tax on exchange differences belongs to IAS 12","QST.IAS21.000106":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Links with IFRS 3 and IFRS 10","QST.IAS21.000107":"Hyperinflation: restate, then translate — The link with IAS 29: the order of operations","QST.IAS21.000108":"Foreign operations in consolidation: goodwill, intragroup balances, reporting dates — Links with IFRS 3 and IFRS 10","QST.IAS21.000109":"IAS 21: purpose, scope and basic vocabulary — What is excluded: derivatives, hedging and cash flows","QST.IAS21.000110":"When a currency is not exchangeable — The disclosures"}}