12.When a single entity makes purchases or sales in a foreign currency, it will be necessary to translate the transactions into its functional currency before the transactions can be included in its financial records. In accordance with IAS 21 The Effect of Changes in Foreign Currency Exchange Rates, which TWO of the following foreign currency exchange rates may be used to translate the foreign currency purchases and sales? The rate that existed on the day that the purchase or sale took place The rate that existed at the beginning of the accounting period An average rate for the year, provided there have been no significant fluctuations throughout the year The rate that existed at the end of the accounting period