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    Question

    Which method is used to account for foreign currency

    transactions at initial recognition under Ind AS 21?
    A Translate using closing rate at reporting date Correct Answer Incorrect Answer
    B Use spot exchange rate at date of transaction Correct Answer Incorrect Answer
    C Always use average annual rate Correct Answer Incorrect Answer
    D Always use historical local currency ignoring exchange rates Correct Answer Incorrect Answer
    E Use forward rate only Correct Answer Incorrect Answer

    Solution

    Initial recognition uses spot rate at date of transaction.

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