In relation to IAS 21 The Effects of Changes in Foreign Exchange Rates, which of the following statements are true?(i) Exchange gains and losses arising on the retranslation of monetary items are recognised in other comprehensive income in the period.(ii) Non-monetary items measured at historical cost in a foreign currency are not retranslated at the reporting date.(iii) An intangible asset is a non-monetary item.A All of the aboveB (ii) and (iii) onlyC (i) and (iii) onlyD (i) and (ii) only

Monetary items include all types of current assets is also not true because monetary items may also…

Answered: B (ii) and (iii) only

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In relation to IAS 21 The Effects of Changes in Foreign Exchange Rates, which of the following statements are true?

(i) Exchange gains and losses arising on the retranslation of monetary items are recognised in other comprehensive income in the period.
(ii) Non-monetary items measured at historical cost in a foreign currency are not retranslated at the reporting date.

(iii) An intangible asset is a non-monetary item.

A All of the above
B (ii) and (iii) only
C (i) and (iii) only
D (i) and (ii) only

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