Transaction date

Learning objectives

• Determine the date of the transaction (the date on which the transaction first qualifies for recognition).L1, L2

Normative references

• IAS 21 §22Date of the transaction: the date on which the transaction first qualifies for recognition; an average rate for a period may be used as an approximation if exchange rates do not fluctuate significantly (inappropriate if they fluctuate significantly).

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

2 questions

• The date of the transaction is the date on which it first qualifies for recognition.L1
• Evrard orders goods in dollars on 5 April; it receives them and obtains control of them on 20 April, the invoice is issued on 28 April and payment takes place on 15 May. Its accounting policy note states: "The date of the transaction is the payment date." What is the error?L2