Sir, i have one question: if we are given historic rate and closing rate, and at the same time, average rate, how can we know which one to apply- either closing rate or average rate?
Ask the Tutor ACCA FR
IAS 21
Hi,
It depends on what you are doing but for this paper you will not need to be using the average rate, that is only for use on consolidation of an overseas subsidiary's profit or loss account.
In this paper you will be translating the monetary values (receivables/payables) at the closing rate.
Thanks
Sign in to reply to this topic.