Recognising exchange loss

Company not accounting for the exchange loss or gain will result in the profit and loss account being overstated or understated to the extent of such loss and thereby effectiing the fairness of the balance sheet.

You can ignore the same if the amount is immaterial and less than your allocated materiality.

Hence depends on the magnitude of the amount.

compute the amount and compare with your materiality, if required ask them to recognize the same and document the same in your working papers.