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I don’t understand why we would include 8% loan notes in the non-current liability in the SoFP as at 30/9/20X6 when it have not happened yet.
Thank you for your answer
Thank you so much.
I understand it now. Thank you for your help.
Thank you so much for your reply but I still have a hard time understanding this. Why a company with low inflation has to pay more for goods from the country with high inflation ?
Again, thank you so much for your patience
I am sorry, but could you explain it more details ? I still have trouble understanding.
From what I understand is that
For example, if the current exchange rate is 1 USD = 23000 VND and now because my country has higher inflation which makes the exchange rate go up: 1 USD = 26000 VND, the US can buy more with the same amount of money that they have paid before.
I know you said that it is not always the case in practice but I always this method when i try to understand about exchange rate.
thank you so much. I understand it now
I forget to mention that this is the full goodwill method. Thank you
