No difference for a non-monetary item at cost

Learning objectives

• Explain that a non-monetary item measured at historical cost does not give rise to an exchange difference.L1, L2

Normative references

• IAS 21 §23At the end of each subsequent reporting period: foreign currency monetary items at the closing rate; non-monetary items measured at historical cost at the exchange rate at the date of the transaction; non-monetary items measured at fair value at the exchange rate at the date when the fair value was measured.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• A property, plant and equipment item acquired in foreign currency and measured at cost gives rise to an exchange difference at each closing date.L1