Question: Under Ind AS 2 1 , The Effects of Changes in Foreign Exchange Rates, how should an entity account for a non - monetary item

Under Ind AS 21, The Effects of Changes in Foreign Exchange Rates, how should an entity account for a non-monetary item that is
measured at fair value in a foreign currency?
A Translate using the exchange rate at the date when the fair value was determined
B Translate using the closing rate at the end of the reporting period
C Translate using the exchange rate at the date of the initial transaction
D Translate using an average exchange rate over the reporting period
E None of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Madison Corporation is developing departmental overhead rates based on direct labor hours for its two production departments, Molding and Assembly. The Molding Department employs 20 people, and the...

Q:

What you understand by cryptocurrencies? Explain the accounting standards might be used to account for cryptocurrency. How IFRS 13 has been applied? How IAS 38, Intangible Assets can define...

Q:

QUESTION 1 The main issue in accounting for foreign currency transactions is: how to distinguish between denomination currency or settlement currency. how to translate the financial statements of a...

Q:

QUESTION Geliga Bhd, a Malaysian incorporated company, acquired a 75% equity interest in an overseas subsidiary, Sabritaz Plc. on 1 October 2019. The consideration was paid in cash. At the date of...

Q:

Question 19. Following IPSAS 24 'Presentation of Budget Information in Financial Statements', under which scenario is it allowed to add an additional comparative budget column in the primary...

Q:

Question 10 When should a provision be recognised under IAS 37 Provisions, Contingent Liabilities and Contingent Assets? When an entity disputes a legal claim and its lawyers advise that it is...

Q:

QUESTION 1 56 Marks Ahitophel Chemicals Ltd (Ahitophel) is a dual listed company on the Namibia Stock Exchange and NASDAQ. The company's headquarters are domiciled in Namibia, and it trades its...

Q:

1.Which of the following statements is correct? a.PAS 1 Presentation of Financial Statements prescribes the basis for presentation of general and special purpose financial statements to improve both...

Q:

A now Selangor government aims to make Puncak Alam a smart city by building smart. sustainable cities and delivering services through apps. The realisation of a digital town will require governments...

Q:

Question 14. Which of the below is not a potential benefit from adopting accrual based IPSAS? Brands that are purchased may be capitalised under IPSAS 31 Intangible assets is not a potential benefit...

Q:

Sorrent Plc is an international group of companies with its head office located in Ireland. The company was founded in 2010 by Helena Ryan and Colman Kenny. The group designs a wide range of living...

Q:

Why do the tax laws sometimes discriminate against related party contracts? Is this always in societys best interest?

Q:

Explain the 3-2-1 concept for workpiece location.

Q:

Which of the following is not a characteriatic of a money market instrument? Maherity evater than 1 yew 4 . an ! towriat Mrixatasinty Which of the following is not a characteristic of a money market...

Q:

Relevant cash flows from the parents point of view are those that are remitted to the parent in its functional currency. T/F

Q:

LO10.2 List the conditions required for purely competitive markets.

Q:

LO10.5 Explain how purely competitive firms can use the marginal-revenuemarginal-cost approach to maximize profits or minimize losses in the short run.

Q:

LO10.1 Give the names and summarize the main characteristics of the four basic market models.