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February 25, 2019 at 10:02 pm
You need to be careful with regards to what the questions is specifically asking. It isn’t asking for the receivable/payable balance but it is asking for the sales and purchase balances which we find in the statement of profit or loss. So if these were to be consolidated then they would be translated at the average rate in the group accounts.
February 25, 2019 at 3:19 pm
I took a go at the FR CBE specimen exam available on ACCA website and an MCQ was given on IAS 21.
The question was:
Which TWO of the following foreign currency exchange rates may be used to translate the foreign currency purchases and sales?
The options given for answers were:
1. The rate that existed on the day that the purchase or sale took place
2. The rate that existed at the beginning of the accounting period
3. An average rate for the year, provided there have been no significant fluctuations throughout the year
4. The rate that existed at the end of the accounting period
I chose 1 and 4 as my answers based on this lecture but the actual answers marked as correct were answers 1 and 3 (average rate with no significant fluctuations). I got mixed up with the answer given, thought maybe you could give an insight to this please?
January 17, 2019 at 1:18 pm
Hi sir, after making the payments how would we record it all in the financial statements of December 2018?
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