For a Non-Integral Foreign Operation, all assets and liabilities are translated at:
AHistorical rate
BClosing rate
CAverage rate
DHalf-yearly rate
Answer & Solution
Correct answer: B. Closing rate
1. Step 1: Per AS 11, for NIFO, all monetary AND non-monetary assets/liabilities are translated at the closing rate.
2. Step 2: Income/expense items at the dates of transactions (or average rate as approximation).
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 15 "Accounting for Branches including Foreign Branches"_