Exchange gains and losses on accounts receivable/payable that are denominated in a foreign currency are deferred and reported upon settlement.

Question

Quizplus · Accepted Answer

Exchange gains and losses on accounts receivable/payable that are denominated in a foreign currency are recognized in the income statement in the period in which the exchange rate changes, not deferred until settlement.

Exchange Gains and Losses on Accounts Receivable/payable That Are Denominated