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According to IAS21,
Is the foreign exchange arise from operation can be presented under cost of sales?
@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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