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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.

All 15 questions in Chapter 4IAS 21 Foreign Currency Transactions MCQs with answers

More IAS 21 Foreign Currency Transactions MCQs

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