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

Question

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AASB 121 requires foreign currency transactions to be recorded on initial recognition in the functional 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, not the reporting date.

AASB 121 Requires Foreign Currency Transactions to Be Recorded on Initial