At the date of the transaction, a foreign currency monetary item is initially recognised and measured using:
A) the closing rate.
B) the foreign currency monetary value.
C) spot exchange rate.
D) US dollars.

Question

Quizplus · Accepted Answer

The initial recognition and measurement of a foreign currency monetary item is done using the spot exchange rate at the date of the transaction. This ensures that the item is recorded at its fair value in the reporting currency.

At the Date of the Transaction, a Foreign Currency Monetary