CERTYNEX IFRS ACADEMY

The Lambert group's accountant translates the British subsidiary's profit of 100,000 pounds at the closing rate of 1.18 euros, i.e. 118,000 euros, writing: "Profit is translated like assets and liabilities." What is the error?

Profit is translated at the opening rate of the year, the only stable rate of the period, which avoids fluctuations.

Profit is translated at the closing rate, but the translation difference that results must then be added to profit.

Profit is translated at the rate of the date the accounts are published, which is the most recent.

Income and expenses are translated at the rates at the dates of the transactions, or at a rate that approximates them.