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- This topic has 3 replies, 2 voices, and was last updated 2 years ago by P2-D2.
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- April 18, 2021 at 8:50 pm #618146
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…
ThanksApril 21, 2021 at 9:07 pm #618447Hi,
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
April 24, 2021 at 10:45 pm #618766Thanks 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…April 29, 2021 at 8:45 pm #619217You’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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