IAS 21 Requires That the Initial Recognition of a Foreign

question 4

Multiple Choice

IAS 21 requires that the initial recognition of a foreign currency transaction be:

• A)in the amount of the foreign currency.
• B)at the closing rate at balance date.
• C)at the rate the currency is expected to be exchanged at on the settlement date for the monetary asset or liability based on the current market price of futures contracts for the relevant foreign currency.
• D)at the spot rate at the date of the transaction.

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Definitions:

Respiratory System

The biological system in animals and humans consisting of organs used for the process of respiration, including the lungs and airways.

Albumin

A family of globular proteins that are commonly found in blood plasma and play roles in maintaining osmotic pressure and as transport proteins.

Hemoglobin

A protein found in red blood cells that binds oxygen in the lungs and transports it to tissues throughout the body.

Blood Plasma

The liquid component of blood that carries cells and proteins throughout the body.