Exchange difference’ for the purpose of IAS 21 is:

Question

Exchange difference’ for the purpose of IAS 21 is:

a.
The difference resulting from translating one currency into the same currency at different exchange rates.
b.
The difference from translating one currency into another currency at the same exchange rates.

c.
The exchange rate for immediate delivery.

d.
None of the above is correct

Answer 1

Exchange difference, for the purpose of IAS 21, is the difference resulting from translating the financial statements of a foreign operation from its functional currency to the reporting currency at different exchange rates. This includes both transactional and translational exchange differences.