IAS 21 Requires That Foreign Currency Monetary Items Outstanding at Reporting

question 13

Multiple Choice

IAS 21 requires that foreign currency monetary items outstanding at reporting date must be:

• A)translated at the spot rate at the transaction date.
• B)reported at the forward-exchange rate based on the 90-day bank bill rate at that date.
• C)translated at the spot rate at reporting date.
• D)translated at the spot rate at settlement date.

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Definitions:

Injuries Or Sickness

This refers to physical or mental conditions that may qualify an individual for certain tax benefits or deductions.

OID Instruments

Debt instruments issued at a discount from their face value, with the difference treated as interest for tax purposes.

Interest Income

Interest Income is the earnings an individual receives from depositing funds in interest-bearing accounts, such as savings accounts or investments in bonds.

Taxpayers

Individuals or entities that are obligated to pay taxes to a federal, state, or local government.