Which of the following statements is correct?
A)If an organization is self-sustaining,non-monetary items recorded at closing values must be translated using closing rates.
B)If an organization is self-sustaining,non-monetary items recorded at closing values must be translated using average rates.
C)If an organization is self-sustaining,non-Monetary items recorded at closing values must be translated using historical rates.
D)If an organization is considered an integrated foreign subsidiary non-monetary items recorded at closing values must be translated using average rates.

Question

Quizplus · Accepted Answer

If an organization is self-sustaining, non-monetary items recorded at closing values must be translated using closing rates according to International Accounting Standards. This is because closing rates reflect the exchange rate at the end of the reporting period and are therefore more relevant for measuring the value of the organization's assets and liabilities at that point in time.

Which of the Following Statements Is Correct