IAS 21Chapter 5Lesson 1
At each reporting date: which rate for which item?
Step 1 of 7Learning objectives
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At the reporting date, monetary items are retranslated at the closing rate; non-monetary items stay at the rate of their transaction date (cost) or measurement date (fair value).
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Learning objectives
- Apply the closing rate to monetary items in foreign currency.
- Keep the transaction rate for non-monetary items at historical cost.
- Use the rate at the measurement date for non-monetary items at fair value.