According to AASB 121,assets and liabilities for each statement of financial position presented shall be translated at:
A)exchange rates at the dates of the original transactions
B)the closing rate at the date of that statement of financial position
C)the spot rate at the start of the financial year
D)none of the above

Question

Quizplus · Accepted Answer

AASB 121 requires assets and liabilities to be translated at the closing rate at the date of the statement of financial position to reflect the exchange rate at which they could be settled at that date. This is in contrast to using exchange rates at the dates of the original transactions or the spot rate at the start of the financial year, which are not relevant to the specific reporting period.

According to AASB 121,assets and Liabilities for Each Statement of Financial