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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.
I 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.
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