Struggling with foreign currency revaluation for the MB-310 exam? Learn how to implement automated processes in Dynamics 365 Finance to ensure compliance with IFRS and ace your certification.
Table of Contents
Question
Adventure Works Cycles has subsidiaries in multiple countries. They need to perform foreign currency revaluation for their consolidated financial statements. You need to ensure that the foreign currency revaluation process is accurate and compliant with international financial reporting standards. What should you do?
A. Implement an automated foreign currency revaluation process that uses the current exchange rates at the reporting date and posts the revaluation adjustments to the appropriate gain/loss accounts.
B. Maintain the original transaction exchange rates for all foreign currency transactions and avoid any revaluation process.
C. Perform manual revaluation on a quarterly basis to reduce the frequency of exchange rate fluctuations.
D. Revalue foreign currency transactions using historical exchange rates to maintain consistency over time.
Answer
A. Implement an automated foreign currency revaluation process that uses the current exchange rates at the reporting date and posts the revaluation adjustments to the appropriate gain/loss accounts.
Explanation
Option A is correct because an automated foreign currency revaluation process using current exchange rates ensures accuracy and compliance with reporting standards. Option B is incorrect as it does not reflect the true value of foreign currency denominated transactions at the reporting date. Option D is incorrect because revaluation should be based on current, not historical, exchange rates. Option C is incorrect as manual revaluation is less efficient and quarterly revaluation may not comply with reporting standards that require revaluation at each reporting date.
Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Microsoft Dynamics 365 Finance Functional Consultant MB-310 exam and earn Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification.