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According to IAS21,
Is the foreign exchange arise from operation can be presented under cost of sales?
Did you not like my answer from January 11 at 11.19 on the ask the tutor page?
@john_girgis_Iskander said:
According to IAS21,Is the foreign exchange arise from operation can be presented under cost of sales?
I think it depends on whether you are dealing with individual company account or group account.
– If individual company:
Exchange difference is recognised as profit or loss in Income statement. If it is from operating activites then it can be under COGS i guess. But I would take it as separate line though. Ask Mike Little for clarification.– If group account:
Any exchange difference occured is recognized in Other components of Equity, not in P/L. (Unless later the subsidiary company is disposed of)I hope this helps.
Thanks for the reference Ruby but I have already answered this same post in the “ask the tutor” page
Hi everyone ,
Question from the same topic:
If subsidiary has in BS financial assets (lets say loans issued) in the foreign currency , should subsidiary in its separate financial statements realise FX gain/loss in P&L after translation of this fanancial assets (monetary item) at the reporting period closing rates ? or FX gain\loss will be realised when loan settled?
Thank you a lot in advance
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