If foreign currency denominated non-monetary assets are measured using the fair value method, they must be translated into the functional currency using the:
A) exchange rate at the date when the assets were revalued.
B) exchange rate current at the end of the reporting period.
C) average exchange rate for the financial year.
D) exchange rate at the original purchase date of the asset.

Question

Quizplus · Accepted Answer

Non-monetary assets measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined. This ensures the value reflects current market conditions.

If Foreign Currency Denominated Non-Monetary Assets Are Measured Using the Fair