Question

With respect to AS 11 (The effects of changes in foreign exchange rates), which of the following statement is incorrect?

A This standard should be applied in accounting for transactions in foreign currencies and in translating the financial statements of foreign operations

B This statement does not specify the currency in which enterprise presents it financial statements. However, an enterprise normally uses the currency of the country in which it is domiciled

C This standard also deals with accounting for foreign currency transactions in the nature of forward exchange contracts

D This standard deal with the restatement of an enterprise’s financial statements from its reporting currency into another currency for the convenience of users accustomed to that currency or for similar purposes

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