As prescribed in IAS 21,in translating the financial statements of a foreign operation from functional to presentation currency,the exchange rate to use for inventory is the average rate during the period the inventory was purchased.

Question

Quizplus · Accepted Answer

IAS 21 requires the use of the exchange rate at the date of the transaction for translating non-monetary items like inventory, not the average rate.

As Prescribed in IAS 21,in Translating the Financial Statements of a Foreign