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:

Officers

Officers are individuals appointed or elected to manage and oversee the operations and strategic direction of an organization, typically within a corporate or governmental context.

Corporation

An organized entity recognized by law as a separate legal entity from its owners, with its rights and liabilities.

Legal Entity

An organization or structure that has legal rights and obligations, including the ability to enter into contracts, sue, and be sued.

Issuing Stock

The process by which a company distributes shares to investors, thereby raising capital in exchange for ownership interests in the company.