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Exchange difference on advance received for issue of shares

10 March 2010 1,733 views 3 Comments

A company has received advance for issue of its own shares in foreign currency. On translation in the functional currency the Company had exchange gain.
What should be treatment of this exchange gain? should this be:

1. Credited to profit and loss account;
2. Credited directly to retained earnings; or
3. Showned as liability to the person providing the advance.

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3 Comments »

  • IFRS List.com: Exchange difference on advance received for issue … — Accounting Blog said:

    [...] Finance wrote an interesting post today. Here’s a quick excerptWelcome to IFRSLIST.com, the free community where you can find resources, share experience, knowledge and ideas about IFRS, bAccounting/b and Auditing with more than 1.5k members. Sign-up and start a new discussion. … [...]

    # 10 March 2010 at 9:30 am
  • darshana_ca said:

    Hello,

    IAS 21 distinguishes treatment to be applied between monetory and non monetory items. Advance received for issuing shares in the future is a non monetary item and G/L if any to be bokked through SOCIE.

    Thanks,
    Darshana

    # 18 March 2010 at 7:18 am
  • Алексей said:

    …

    Хм …

    # 18 March 2010 at 8:48 am

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