An exchange difference is 'realised':
A) on initial recognition of a monetary asset.
B) on remeasurement of a monetary liability at the end of the reporting period.
C) when the exchange rate changes between initial recognition and cash settlement.
D) when the exchange rate changes between initial recognition and end of reporting period.

Question

Quizplus · Accepted Answer

Exchange differences are considered 'realised' when there is a change in exchange rates between the initial recognition of a monetary asset or liability and its settlement in cash, which results in an actual gain or loss being recognized in the financial statements.

An Exchange Difference Is 'Realised