At the end of the reporting period, a foreign currency monetary item is remeasured using:
A) US dollars.
B) the closing rate.
C) the spot exchange rate.
D) the foreign currency monetary value.

Question

Quizplus · Accepted Answer

According to International Financial Reporting Standards (IFRS), at the end of the reporting period, foreign currency monetary items should be remeasured using the closing rate, which is the exchange rate at the end of the reporting period. This ensures that the monetary item is translated into the reporting currency at its current value. Therefore, the correct choice is option B.

At the End of the Reporting Period, a Foreign Currency