Dear Sir,
I would appreciate if you could advise on the following:
My company contracted to buy US$10,000 at 110 Yen per US$, spot rate is 105 Yen, functional currency of my A/Cs is Singapore $, do I have to convert the US$ to spot rate on the transaction date or can I convert to spot rate only at end of the month?
Thank you
Benny
Ask the Tutor ACCA FR
Forex Contract
The general rule is to convert at the rate applicable on the transaction date (though this is beyond F7)
Have you thought of asking your auditors? Or Head Office finance department?
I'm not sure that I should be used as a financial advisor and, before this goes any further, I deny all responsibility should my comments cause you / your company any loss
!!!!!
Dear Mike,
Thank you very much for the reply. Sorry if I have abused your services.
I understand that you advice would be used for my personal reference and exam purposes only without responsibility on your side.
Regards,
Benny
No harm done then so that's ok!
:-)
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