sir,would like to know why the sale proceed of foreign subsidiary is 195÷€/$1.3? why not using the average rate€/$1.5 to divide? isn't profit or loss item should use average rate?
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question 4 b (i)for becker mock test 1
8y ago#1Hi,
Sorry, but I've not been able to look at the mock tests that have been provided but I'd have thought that if you are receiving cash as part of a disposal then you would use the rate in place at the date the transaction took place to record the sales proceeds.
just because we are using it to work out a gain/loss through profit or loss wouldn't mean that we use the average rate.
Thanks
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