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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

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

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