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Foreign currency transactions at the entity level
Show the exchange differences arising for Cheddarin the year to May 31 2021.
foreign customer for 14 million euros on April 30 2021when the exchange rate was
Cheddarpurchases property from a foreign supplier for 60 million euros on 31
May 31 2021, the amounts have not been settled. The closing exchange ratewas
By May 31 the fair value of the property had increased to 62 million euros.
1.80E = $1. Both transactions are credit transactions and at the entity’s yearend,
January 2021, when the exchange rate was 2E = $1. The entity sells goods to a
1.70E = $1. The entity’s functional currency is the $.
Cheddarhas a policy of revaluing its property to fair value.
Explain and give me the answer
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