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Your client, Cohos Ltd. (Cohos), has a wholly owned foreign subsidiary, Limbo Inc. (Limbo). The functional currency of Limbo is considered to be the Canadian dollar. Limbo has a year end of December 31. Both companies apply IFRS. Limbo declared dividends of 136,000 FCU in the year and paid dividends of 120,000 FCU later in the year. The correct rate to translate dividends at for the statement of retained earnings is:

a) The rate in effect on the date the dividend is paid.
b) The average rate for the year.
c) The rate in effect on the date the dividend is declared.
d) The year-end rate.

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