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.

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.