AASB 121 requires foreign currency transactions to be recorded on initial recognition in the local currency,by applying to the foreign currency amount the spot exchange rate between the local currency and the foreign currency at the date of the transaction.

Question

Quizplus · Accepted Answer

AASB 121 requires foreign currency transactions to be recorded on initial recognition in the entity's functional currency, not the local currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

AASB 121 Requires Foreign Currency Transactions to Be Recorded on Initial