Which of the following statements pertaining to the two methods under IAS 21 to translate the financial statements of a foreign operation is INCORRECT?

Multiple Choice

The objective of the functional currency translation method is to produce a set of translated financial statements as if the transactions had first occurred in the functional currency.

The presentation currency translation method is used when the functional currency of the foreign operation is the same as the presentation currency of the parent.

The presentation currency translation method preserves the relationship of balance sheet methods by using the same rate to translate all assets and liabilities.

The functional currency translation method is used when the functional currency of the foreign operation is the same as the presentation currency of the parent.