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For an Integral Foreign Operation, non-monetary items carried at historical cost are translated at:
AClosing rate
BSpot rate at reporting date
CAverage rate
DHistorical rate (rate on the date of transaction)
Answer & Solution
Correct answer: D. Historical rate (rate on the date of transaction)
1. Step 1: Per AS 11, non-monetary items at historical cost in IFO are translated at the historical (transaction-date) rate.
2. Step 2: Non-monetary at fair value → rate when fair value was determined.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 15 "Accounting for Branches including Foreign Branches"_