What happens to non-monetary items held at historical cost when retranslated?

Non-monetary items held at historical cost do not undergo retranslation because they are not subject to fluctuations in exchange rates like monetary items. Historical cost accounting reflects the original purchase price of the asset, and this value is not adjusted for current exchange rates. As a result, when preparing financial statements, non-monetary items such as property, plant, and equipment, or intangible assets that have been recognized at historical cost remain unchanged regardless of shifts in the currency exchange rates. This approach maintains the integrity and consistency of financial reporting over time, ensuring that assets are reported at a stable and original value rather than fluctuating with market rates.