Under the translation method required by AASB 121,the approach to translating a foreign operation's accounts includes:
A) translating monetary items at the closing rate of exchange .
B) translating non-monetary assets at the average exchange rate since the date of purchase of the asset.
C) translating transfers of post-acquisition equity items within the equity category at the rate of exchange current at the date the original equity item was first included in equity.
D) translating revenues and expenses at the average rate of exchange applied to equity items.

Question

Quizplus · Accepted Answer

Monetary items are translated at the closing rate according to AASB 121, which reflects the most current exchange rate at the balance sheet date. Non-monetary items, revenues, and expenses are not translated using the methods described in options B, C, and D.

Under the Translation Method Required by AASB 121,the Approach to Translating