Under accounting standards for private enterprises, what exchange rate is used for non-monetary items carried at fair value?

A) The exchange rate at the date the item was ordered
B) The exchange rate at the date the item was received
C) The exchange rate at the date of payment for the item
D) The exchange rate at the statement of financial position date

Non-monetary Items

Items on the balance sheet that cannot be readily converted into cash and are not carried at their cash value, such as property, plant, and equipment.

Fair Value

The estimated market value of an asset or liability, based on current market conditions and comparable transactions, used in financial reporting to provide a clear picture of a company’s financial health.

Exchange Rate

An exchange rate is the value of one currency expressed in terms of another currency, used to convert different currencies for trade and financial transactions.