Questions & Answers
Are contract assets and contract liabilities monetary or non-monetary?
Question: We are a shipbuilding company with the functional currency of USD. We entered in the long-term contract to build a ship for a customer in China. The contract price is set in CNY. How do we account for a contract asset under IFRS 15?…
Foreign currency rates to use when they are not available
Question We are a trading company and our functional currency is EUR. Occasionally we trade with countries whose currencies do not have a daily quote of exchange rate due to low exchangeability. What closing exchange rates shall we apply? Answer The standard IAS 21…