Apart from Some Limited Exceptions,IAS 21 Requires That Exchange Differences

question 30

Multiple Choice

Apart from some limited exceptions,IAS 21 requires that exchange differences on monetary items shall be:

• A)deferred and recognised when the associated asset or liability is realised or settled.
• B)treated as a reserve or provision against the associated monetary item.
• C)not recognised in the accounts until the monetary asset is received or monetary liability settled.
• D)recognised as income or an expense in the reporting period in which the exchange rates change.

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Definitions:

Total Supply Chain

The entire sequence of processes involved in the production and distribution of a commodity, from raw materials to the final product delivered to the end user.

Profitability

The ability of a business to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Supply Chain Coordination

The synchronization and harmonization of a company's supply chain activities, from procurement to product delivery, for improved efficiency and effectiveness.

Forecast Error

The difference between the predicted demand or trends and the actual outcomes, highlighting inaccuracies in forecasting models.