CFA II Financial reporting analysis related question

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Dear All!
I came across some problems in understanding Multinational Operation & evaluating financial reporting quality,
Could anyone please help me clarify the following questions:

(1)quotation from textbook: "IAS21 require that Financial statement of foreign entity be restated for local inflation firstly, then, the inflation restated Foreign statements are translated into parent's presentation currency using the Current Exchange Rate(i.e using current rate method)"(cited from page 286,reading 25, 3.2.4 highly inflationary economies)

according to this statements, we could either apply current rate method or current exchange rate onto translation for hyperinflation environment under IFRS, however, there is a big difference between current exchange rate and current rate method, As far as current rate method concerned, average exchange rate is required for income statement.

Example 7(textbook page 304, translation of foreign currency financial statements of a foreign entity operating in a highly inflation country) illustrate the application of IAS21 in terms of using the Current Exchange Rate in income statement.

Therefore, I have a reason to believe that current exchange rate should be applied onto both balance sheet and income statement according to example 7; however, it is the IAS21 confusing me in that requirement regarding to using the Current Exchange Rate(i.e using current rate method)"(cited from page 286,reading 25, 3.2.4 highly inflationary economies) really confuse me on

which one should be the correct solution (under current rate method, both average exchange rate and current exchange rate should be applied onto income statement and balance sheet respectively; under example 7, or under current exchange rate, only current exchange rate being applied onto both balance sheet and income statement!!

(2) Regarding to ratio of revenue divided by cash collection from customers, how does it related to earning quality analysis or financial reporting analysis?
      which statements below is correct?
     
a  the bigger the ratio, the better the reporting quality and earnings quality.
b  the smaller the ratio, the better the reporting quality and earnings quality


thanks in advance

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关键词：Reporting financial Financia question Analysis CFA Analysis financial question Reporting