• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

currency rate

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › currency rate

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 15, 2017 at 5:50 am #415830
    shilpamary
    Member
    • Topics: 99
    • Replies: 81
    • ☆☆

    Jimjam is a company based in India, where the currency is the Indian Rupee (IR). They owe money to a
    supplier in Ruritania, where the currency is Ruritanian Dollars (R$). The amount owing is R$ 240,000.
    The current exchange rate is IR/R$ 8.6380 – 9.2530
    How many Indian Rupees will Jimjam have to pay?

    1)you had multiplied 240000 with 9.2530.? is it bec its direct quote? buying rate becomes 9.2530 ? since its pay we need to buy $ and sell INR . since payment is $ we need to take buy rate .is it???

    2)CAN we read it like 1inr = RS $ 8.638 Ie; RS $8.638 / INR which becomes indirect quote or should we read it as direct quote what given in the question?

    November 15, 2017 at 10:05 am #415913
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Firstly, whether we call it a direct or an indirect quote is completely irrelevant for the exam. All that matters is to be able to convert the money correctly.

    Normally just use the exchange rate given in the exam (but use it correctly) – there is no point whatsoever in inverting the quote. It will give the same answer (subject to roundings) but simply makes unnecessary extra work.

    I do through this example in my free lectures and I do suggest that you watch them.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • o1lim on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)
  • julio99 on Impairments – Impairment (CGU) – ACCA Financial Reporting (FR)
  • effy.sithole@gmail.com on EPS – diluted EPS Example – ACCA Financial Reporting (FR)
  • Ken Garrett on The Finance Function in the Digital Age – CIMA E1
  • DeborahProspect on ACCA SBR Specimen Exam 2 Question 1

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in