When a single entity makes purchases or sales in a foreign currency, it will be necessary to translate the transactions into its functional currency before the transactions can be included in its financial records.In accordance with IAS 21 The Effect of Changes in Foreign Currency Exchange Rates, which of the following foreign currency exchange rates may be used to translate the foreign currency purchases and sales?(1)The rate which existed on the day that the purchase or sale took place(2)The rate which existed at the beginning of the accounting period(3)An average rate for the year, provided there have been no significant fluctuations throughout the year(4)The rate which existed at the end of the accounting period