At the date the transaction is recognized,the transaction shall be measured and recorded in
A)the functional currency of the recording entity by using the exchange rate in effect at that date.
B)the functional currency of the foreign country in which it is denominated.
C)the functional currency of the foreign country in which it is measured.
D)the functional currency of the recording entity.

Question

Quizplus · Accepted Answer

According to the accounting standards (IAS 21), when a transaction is recognized, it should be measured and recorded in the functional currency of the recording entity by using the exchange rate in effect at that date. This ensures that transactions are recorded consistently and accurately in the home currency of the entity.

At the Date the Transaction Is Recognized,the Transaction Shall Be