Foreign exchange

This query is : Open

MASHUMI (Querist)
Follow

01 August 2014 We bought a machine in another country for R15 000 through our financial institution (Bank) , but when the machine was finally delivered the amount was now R10 000.00 . What is the proper accounting treatment of the difference of R5 000?

We are the government institution not involved in the foreign exchange trading .

Kumar

Kumar (Expert)
Follow

02 August 2014 This is to be accounted as exchange gain

But 50% decrease on account of exchange rates are odd, I hope the numbers used are only for example

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok