Rate selection
Monetary assets and liabilities are translated at the closing rate at each reporting date.
Non-monetary items measured at historical cost use the historical exchange rate.
Income and expense items typically use exchange rates at transaction dates or a weighted average.
Key takeaways
- Monetary items use closing rate
- Non-monetary at historical cost use historical rate
- Translation differences often go to OCI
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Apply these concepts with formula-based tools on Calculator Factory.
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FAQ
- Does US GAAP differ?
- US GAAP has similar remeasurement concepts but presentation and certain scope rules differ — confirm your reporting framework.