Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Exchange Gain/Loss ??
- This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
- AuthorPosts
- August 4, 2014 at 10:06 am #180690
Dear John,
Please help to advise if there is any exchange gain/loss for below example:-
The reporting currency is SGDA supplier invoice dated 1/8/14 is USD100, the ex rate is SGD1 = USD 1.23
Paid USD100 for above invoice today the ex. rate is SGD 1 = USD 1.25
Thanks a lot.
August 4, 2014 at 11:20 am #180731I assume that you are asking for ‘real life’ purposes rather than for the exam (this could not be asked in F9 because it is an accounting problem).
It depends on how you are required to do your accounting.
Here, the invoice would be converted at the rate applicable as at the date of the invoice. So it would be 100/1.23 = SGD 81.30.
The payment would be converted at the rate on the date of payment, and would be 100/1.25 = SGD 80.
So there would be an exchange gain of SGD 1.30.
August 5, 2014 at 2:18 am #186397Thanks Tutor, i encounter this at work and was all confused.
Now its clear.
August 5, 2014 at 6:16 am #186403Great 🙂
- AuthorPosts
- You must be logged in to reply to this topic.