Which of the following statements about the recognition of exchange differences in respect of foreign currency transactions reported in an entity's functional currency is true according to IPSAS $4$ 'The effects of changes in foreign exchange rates'?

$$ The exchange differences on settlement of monetary items should be recognized in surplus or deficit

$$ The exchange difference on translation of a monetary item at a rate different from that used at initial recognition should be recognized in surplus or deficit

$$ Any exchange difference on the translation of a monetary item at a rate different to that used at initial recognition should be recognized in other comprehensive income

$$ Exchange differences should be recognized in equity and never in the income statement