alleryStart learning →If a currency is not exchangeable, what must the entity do?
AStop preparing statements
BUse last seen rate forever
CUse a neighbour's rate
DEstimate the spot rate
Answer & Solution
Correct answer: D. Estimate the spot rate
When no exchange is possible, the entity estimates a spot rate that reflects the conditions at the measurement date.
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Related questions
A lends to foreign subsidiary B, no settlement planned. The loan is part of:In assessing exchangeability, which is considered?Does a normal administrative delay make a currency not exchangeable?How does Ind AS 21 define an exchange rate?An exchange difference arises from translating currency units at what?What are the two principal issues in Ind AS 21?Which standard covers presenting foreign currency cash flows?Which area does Ind AS 21 leave to Ind AS 109?