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- Select the correct definition of indirect exchange rate. O Foreign currency per unit of domestic currency. Domestic currency per unit of foreign currency.Which of the following combinations correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses?What does the term functional currency mean? How is the functional currency determined under IFRS and under U.S. GAAP?
- What is meant by spot rate in case of foreign currency transaction?explain each factors of foreign exchange marketsExplain the concepts of Local Currency, Functional Currency and Presentation Currency with suitable examples Explain the rule for translating the Financial Statements of Foreign Operations from Local Currency to Functional Currency