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question 4b
In the calculation of the currency gain 4000/1.15, how can i get the 4000?
I can’t see a currency gain of 4,000 mentioned in the answer to that question.
In the working of the currency gain,there has a calculation if the six month revenue before currency gain 4000/1.15
March June 2017 P5 Q4b is Sweet Cicely, and has nothing about exchamge rates. Have you noted the right question?
March/June 2017 past year papers,i get it from ACCA website the Q4b is Jenson,Lewis and Webb (JLW)
Sorry – I had a brain storm and was for some reason looking at the wrong paper.
The export division is showing revenue of 8m $KL. Half of that was earned in each of the six months of the year by earning $SL and translatin.
On 30 June $KL weakened 15% against the $SL. that means the company gets more $KL per $SL than previously.. If the original rate had been $KL1 = $SL2, the new rate would be 1.15$KL = 2$SL. So an export for $SL60,000 instead of yielding $KL30,000 would now yield $34,500. The increase of 4,500 is good luck/non controllable. To remove it, divide the $KL34,500 by 1.15 = 30,000.
Apologies again.
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