According to the temporal method, monetary assets are translated at the:
A) average exchange rate for the reporting period.
B) current rate existing at the end of the reporting period.
C) exchange rate at the date the monetary assets were first recognised.
D) exchange rate existing at the start of the reporting period.

Question

Quizplus · Accepted Answer

According to the temporal method, monetary assets are translated at the current rate existing at the end of the reporting period. This method assumes that monetary assets are held for a short period and are more liquid, hence using the current rate provides a more accurate reflection of their value.

According to the Temporal Method, Monetary Assets Are Translated at The