Finance
4545 Points
Joined September 2020
Forgor to mention, when you buy an instrument its
Investment account dr
To Bank cr.
But if this is the sales operations then,
Then as well you have to use the same entry because purchasing is trading activity and inventory compensates for it. Here there is no inventory. Once RECOGNITION is over, gains and losses are taken to income statement.
So there is no need to rwport it as opex or capex but just the below
(a) the amount of exchange differences included in the net profit
or loss for the period; and
(b) net exchange differences accumulated in foreign currency
translation reserve as a separate component of shareholders’
funds, and a reconciliation of the amount of such exchange
differences at the beginning and end of the period.