When Translating into the Functional Currency, Foreign Currency Denominated Non-Monetary

question 1

Multiple Choice

When translating into the functional currency, foreign currency denominated non-monetary items measured using historical cost must be translated using the:

• A) rate current at end of reporting period.
• B) average rate for the reporting period.
• C) exchange rate at the date of the transaction.
• D) rate prevailing at the end of the previous financial year.