CAF-6 · Chapter 4 · Question 4 of 15
At the end of the reporting period, how should foreign currency monetary items be re-translated?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Using the closing rate at the reporting date.
Explanation
IAS 21 requires that at each reporting date, monetary items in foreign currency must be re-translated using the closing rate.
More IAS 21 Foreign Currency Transactions MCQs
- Q6Exchange differences arising on the settlement of monetary items should be recognized in:
- Q7Which of the following is a primary indicator for determining an entity's functional currency?
- Q8When an entity's functional currency changes, the entity shall:
- Q9Presentation currency is defined as:
- Q10If an entity translates its results into a presentation currency that is different from its functional currency, assets and liabilities…