Apart from Some Limited Exceptions,AASB 121 Requires That Exchange Differences

question 19

Multiple Choice

Apart from some limited exceptions,AASB 121 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.
• E) None of the given answers.

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