Which of the Following Statements Is Correct with Respect to AASB

question 73

Multiple Choice

Which of the following statements is correct with respect to AASB 121 The Effects of Changes in Foreign Exchange Rates?

• A) Foreign currency transactions are recorded, on initial recognition in the presentation currency, by applying to the foreign currency amount the spot exchange rate between the presentation currency and the foreign currency at the date of the transaction.
• B) At each end of the reporting period, foreign currency monetary items shall be translated using the closing rate.
• C) At each end of the reporting period non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of the transaction.
• D) At each end of the reporting period, non-monetary items that are measured at fair value in a foreign currency shall be translated using closing rate.

---

Definitions:

Canada

A country in North America known for its vast landscapes, multicultural diversity, and as the second-largest country by total area.

Alternative Medicine

Those treatments not normally taught in medical schools, used in hospitals, or included in health care plans (e.g., acupuncture).

Canada's Health Care

A publicly funded and administered system providing universal access to health care services for Canadian citizens and residents.

Post-Structuralist

A theoretical approach that criticizes and seeks to move beyond the constraints of structuralist thought, focusing on the unpredictable and fluid nature of meanings.