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Recognition of gain / loss(due to exchange rate) from an investment property

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Recognition of gain / loss(due to exchange rate) from an investment property

  • This topic has 2 replies, 2 voices, and was last updated 11 years ago by mujji.
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  • April 24, 2014 at 6:38 pm #166181
    mujji
    Member
    • Topics: 2
    • Replies: 19
    • ☆

    if we own an investment property in a foreign country and currency, how do we treat the gain or loss from the change in exchange rate at the year end? do we record it in the profit or loss statement? how do we show it in the statements?

    Thanks.

    April 24, 2014 at 11:06 pm #166206
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 2
    • ☆

    It will be credited to the revaluation reserve in the equity and will never be credited to the profit of the year except when there is a reduction in the value of the asset and the revaluation reserve was not enough then only the difference will be debited to the profit and loss of the year.

    April 25, 2014 at 3:53 pm #166288
    mujji
    Member
    • Topics: 2
    • Replies: 19
    • ☆

    ok thanks.

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