When remeasuring foreign currency financial statements (functional currency is p

Question

When remeasuring foreign currency financial statements (functional currency is parent currency), which of the following accounts would be translated using current exchange rates?

Property, plant & equipment       Inventories carried at market

   Yes                                                                  Yes

Property, plant & equipment    Inventories carried at market

  No                                                                   No

Property, plant & equipment           Inventories carried at market

  Yes                                                                  No

Property, plant & equipment          Inventories carried at market

No                                                                   Yes

Property, plant & equipment       Inventories carried at market

   Yes                                                                  Yes

Property, plant & equipment    Inventories carried at market

  No                                                                   No

Property, plant & equipment           Inventories carried at market

  Yes                                                                  No

Property, plant & equipment          Inventories carried at market

No                                                                   Yes

Explanation / Answer

D. Property plant and equipment will not be translated using current rate but will be valued at the rate on the date of acquisition.

Inventory carried at market shall be translated using current rate. Had the invnetory been valued at historical cost. it would not have been translated using current rate.

Hence. D is the right answer

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