I always thought that when they say: “Use the historical rate” that means using the BGN E/R. However, I’ve been through several problems where they use the “Average E/R” as the “Historical E/R”… Now what’s the deal here?
can’t be… they refer to historical based on when the particular event happened… so for: COGS - historical is when the inventory was bought (usually Beg E/R, sometime average - if inventory has been bought evenly throught out the year…watch out for that!) Inventory - same as COGS PPE/Dep - historical is when the fixed asset was bought CS - historical is when the equit was issued Div - historical is when the dividend was paid…
ur right inv. was bought evenly throughout the year… that’s why they used AVR E/R! thanks 