RECOGNITION METHODS AASB 121/IAS 21 mandates the immediate recognition method where exchange differences on monetary items are recognised in the profit or loss in the period of exchange rate movement. Other methods such as ‘defer and amortise’ or ‘recognition on realisation’ are not permitted. Required Do you agree that the correct decision has been made from the point of view of the conceptual framework? Are there other reasons to prefer the immediate recognition method?