For translation of foreign currency transactions,AASB 121 requires use of the:
A)spot exchange rate at the date of the foreign currency transaction
B)spot exchange rate at the start of the financial year
C)spot exchange rate at the end of the financial year
D)none of the above

Question

Quizplus · Accepted Answer

AASB 121 requires the use of the spot exchange rate at the date of the foreign currency transaction for translation of foreign currency transactions. This ensures that the transaction is recorded at the exchange rate on the day it occurred. The spot exchange rate at the start or end of the financial year may not reflect the actual rate at the time of the transaction.

For Translation of Foreign Currency Transactions,AASB 121 Requires Use of The