CAF-6 · Chapter 4 · Question 10 of 15
If an entity translates its results into a presentation currency that is different from its functional currency, assets and liabilities are translated at:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The closing rate at the date of the statement of financial position.
Explanation
For translation into a presentation currency, assets and liabilities are translated at the closing rate at the reporting date.
More IAS 21 Foreign Currency Transactions MCQs
- Q12A foreign exchange gain on a non-monetary item (like a revalued building) where the gain itself is recognized in OCI, should have its…
- Q13Which item is NOT a monetary item?
- Q14The currency that mainly influences labor, material, and other costs is considered a:
- Q15An entity can have:
- Q1According to IAS 21, what is 'Functional Currency'?
