CERTYNEX IFRS ACADEMY

Valdor, whose functional currency is the euro, pays a supplier an advance in dollars on 10 February for a machine that will be delivered and recognised in April. Which date determines the rate applicable to the prepayment asset?

The date of initial recognition of the prepayment asset, i.e. 10 February.

The date of delivery of the machine in April, when the related asset or expense is recognised.

The closing date of the year following the payment of the advance.

The date the supplier issues the final invoice.