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- This topic has 2 replies, 3 voices, and was last updated 11 years ago by joni.
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- November 12, 2013 at 5:28 pm #145704
Dear Sir / Madam,
In one of the Question Papers – Parent decided to make payment of 12 Million Euros in 2 installments. One payment was made mid year and another planned after Balance Sheet Date. It is also stated that this payment although for purchase of plant it is refundable.What my assessment is
1) Show payment of 6 Million Euros by taking Actual Exchange Rate on the date of 1st Installment of 1 USD = 0.75 Euro so it comes to 8 M USD
2) On Balance Sheet Date again remeasure remaining promised payment by taking Year End Rate – which was
1USD = 0.85 Euro so it comes to 7.05 M USD.
So there is GAIN OF 0.95 M USD as we are paying less.
BUT ACCA Solved problem has shown a Exchange Loss of 0.95. I did not get it
Although payment is deemed to be deposit if we are paying less vis a vis promised amount how come exchange loss.
Kindly explain
DeepNovember 12, 2013 at 5:40 pm #145711Which question?
November 12, 2013 at 6:38 pm #145718could you pls, tell me who is the examiner for f5? and can i get his/her guidance ?
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