Cash held in foreign currencies must be translated into Canadian dollars using the rate of exchange at the statement of financial position date.

Question

Quizplus · Accepted Answer

This is true according to the guidelines of International Financial Reporting Standards (IFRS). Companies are required to use the exchange rate at the statement of financial position date to translate foreign currency balances into their reporting currency, which in this case would be Canadian dollars. This ensures that the financial statements reflect the most current and accurate value of the foreign currency holdings.

Cash Held in Foreign Currencies Must Be Translated into Canadian