Question: Please please answer based on IAS 21 and refer the specific paragraph Adobo Inc is a company in Manila whose functional currency is the Philippines

Please please answer based on IAS 21 and refer the specific

Please please answer based on IAS 21 and refer the specific paragraph

paragraph Adobo Inc is a company in Manila whose functional currency is

Adobo Inc is a company in Manila whose functional currency is the Philippines Peso. On 6 October 2021, Adobo Inc purchased raw materials on account from its vendor in Indonesia with invoices issued in Rupiah. Approaching the end of 2021 , Peso weakens compared to Rupiah. However, management believes that the exchange rate will return to its position when the payment is due in January 2022 . Its accounts payable was not adjusted on 31 December 2021. Required: Analyze whether the accounting treatment is appropriate. Please explain

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