CAF-6 · Chapter 4 · Question 12 of 15
A foreign exchange gain on a non-monetary item (like a revalued building) where the gain itself is recognized in OCI, should have its exchange component recognized in:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Other Comprehensive Income
Explanation
When a gain or loss on a non-monetary item is recognized in OCI, any exchange component of that gain or loss is also recognized in OCI.
More IAS 21 Foreign Currency Transactions MCQs
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