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Hello
I have a question that at the end of year our unsettled transaction we record our gain/loss according to our closing rate but gain is not realised where it is recorded and what’s the journal entry?
Kindly answer…
ThanksHi,
It will be recorded through profit or loss. The gain is a credit and the loss a debit, with the other side reflecting the change in value of the monetary item.
Thanks
Thanks for Answer…
One more thing…
There is a note in my Book that
Exchange gain/losses :
“Recorded in SPL unless movement in FV recorded in equity,in which case the exchange gain/loss is also taken to equity….”
When we take this to equity and why?
Kindly explain para…You’re welcome!
I doubt you’d see your point in an FR exam and it would be more likely in SBR. However, all it is doing is matching the exchange gain/loss to where the change in value is recorded. So if we have an overseas FVTOCI investment that changed in value then the exchange gain/loss will also go to OCI.
Thanks
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