CERTYNEX IFRS ACADEMY

In his 31 December closing file, an accountant at Merlon writes: "Closing rate = average of the December rates = 0.91." The spot rate observed on 31 December is 0.94. What is the error?

The closing rate must be the rate of the last working day of November, the previous month.

The closing rate only exists for non-monetary items, never for liabilities.

The closing rate must include the exchange fees charged by the bank.

The closing rate is the spot rate at the end of the period, here 0.94, and not an average.