Where a change in the functional currency occurs, the translation procedures as outlined in IAS 21 The Effects of Changes in Foreign Exchange Rules, apply:
A) prospectively, from the date of the change;
B) prospectively, from the next reporting date;
C) retrospectively and must be adjusted in the opening balance of retained earnings;
D) retrospectively and must be adjusted directly into the current period profit or loss.

Question

Quizplus · Accepted Answer

The translation procedures outlined in IAS 21 for a change in functional currency are applied prospectively from the date of the change. This means that the new rules are used for all transactions and balances from the date of the change forward, without altering historical financial statements.

Where a Change in the Functional Currency Occurs, the Translation