OpenTuition | ACCA | CIMA

Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums

IAS 21 – Example – ACCA Financial Reporting (FR)

Spread the word

If you have benefited from our materials, please spread the word so more students can benefit.

Donate

To help us keep materials up to do and add new content you can also donate

BPP

Reader Interactions

Comments

  1. Hi,

    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.

    Thanks

  2. Hi Sir,

    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?

    Thanks.

Leave a Reply