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

Question

Quizplus · Accepted Answer

According to IAS 21, at the end of the reporting period, a foreign currency monetary item should be remeasured using the closing rate, which is the exchange rate at the end of the reporting period. This ensures that the financial statements reflect the most current exchange rate and accurately reflects the company's financial position.

At the End of the Reporting Period, a Foreign Currency