Question：IAS 21 sets out the required accounting procedures involving foreign currency transactions for a single company.
　　Which of the following options is an incorrect statement of the required accounting procedures for foreign currency transactions undertaken by a company?
　　A. Non-monetary assets such as non-current assets are retranslated into the reporting currency at the end of each accounting period.
　　B. When rates of exchange are fixed by contract the agreed rates are treated as a derivative under IAS 39.
　　C. Monetary assets and liabilities comprising unsettled balances denominated in foreign currency are translated into the reporting currency at the reporting date using the exchange rate in force at that date.
　　D. Transactions denominated in foreign currency are entered using the rate of exchange in force when the transaction occurred.
　　The correct answer is:Non-monetary assets such as non-current assets are retranslated into the reporting currency at the end of each accounting period.
　　解析：In other words, non-monetary assets once translated are not retranslated each year. The carrying amount is based upon the original translated amount.
　　Where a contract fixes an exchange rate, this is the same as if the company had bought or sold goods in a foreign currency but hedged the foreign exchange risk using forward contracts. As a forward is a derivative under the rules of IAS 39, it would be treated as a financial asset or a financial liability. The underlying receivable or payable would still be translated at the closing rate.