Harrier Plc Has Borrowed Substantially Using Foreign Currency Loans

question 23

Multiple Choice

Harrier Plc has borrowed substantially using foreign currency loans.An unexpected major downturn in the French economy after reporting date has substantially weakened the euro,increasing the size of the debt materially.According to IAS 10,how should this event be reported in the financial statements?

• A)The foreign currency debt should be restated at the new exchange rates and the loss recognised.
• B)No reporting is required.
• C)Harrier Plc's bank and/or debenture trustees should be notified of the potential that the company may break its debt covenant.
• D)A note disclosure of the event should be made.