Under International Accounting Standards Board rules, what method is required to account for foreign currency transactions?
A) A one-transaction perspective must be used.
B) The two-transaction perspective must be used.
C) A sale is not recorded until payment is received and converted to U.S. dollars.
D) A sale is not recorded until payment is received in the foreign currency.

Question

Quizplus · Accepted Answer

Under International Accounting Standards Board rules, the two-transaction perspective must be used to account for foreign currency transactions. This means that foreign currency transactions must be initially recorded in the foreign currency and then again in the entity's reporting currency when the exchange rate changes. This allows for a more accurate representation of the financial position of the entity.

Under International Accounting Standards Board Rules, What Method Is Required