The following is an extract from the 'Notes to the Accounts' explaining the foreign currency translation reserve.

What are the rates represented by (a) and (b)?
A) (a) Current; (b) Spot.
B) (a) Historical; (b) Current.
C) (a) Current; (b) Historical.
D) (a) Spot; (b) Current.
E) (a) Forward; (b) Historical.

Question

The following is an extract from the 'Notes to the Accounts' explaining the foreign currency translation reserve.

What are the rates represented by (a) and (b)?
A) (a) Current; (b) Spot. 
B) (a) Historical; (b) Current. 
C) (a) Current; (b) Historical. 
D) (a) Spot; (b) Current. 
E) (a) Forward; (b) Historical.

Quizplus · Accepted Answer

The current rate is used to translate current assets and liabilities, while the historical rate is used to translate non-current assets and liabilities. Therefore, (a) represents the current rate and (b) represents the historical rate.

The Following Is an Extract from the 'Notes to the Accounts