FOREX

/Tag:FOREX

Exchange difference on payment to contractor for development on fixed assets

we have a contract for development of a fixed assets, as per the contract:- Total Contract amount =  260 Million AED We have to pay this amount in Euro that is already fixed as per the contract it is 4.49 AED per Euro whatever is the rate prevailing currently doesnt matter bcoz it has been [...]

By |November 8th, 2009|OTHER IFRS|3 Comments

Request for auditing standard

Dear all, Can you share me the international auditing standard document. Thanks Danella,I double checked after the comment below, and I agree with Hemant. IAS 21.28 explicitly states that gains/losses on forex should be recognized in P&L. The forex is not attributable to the asset but to the financial liability.http://www.ifac.org/IAASB/ My apologies for my earlier [...]

By |December 15th, 2008|AUDIT|1 Comment

Forex hedging treatment and disclosure.

Dear all My Company has an outstanding USD loan of say US$10m and as our main subsidiaries are operating in China and earns revenue denominated in RMB, which will ultimately flow to our company in terms of RMB dividend (converted to USD due to exchange regulation in PRC). As we need to make periodic payments [...]

By |December 15th, 2008|IFRS|0 Comments

PPP

Hi   Please give me your opinion on forex loss on Assets. Do you capitalize it or do expense it to the foreign loss This e-mail message and any attachment hereto are confidential information intended for a specific addressee and purpose.  If you ...

By |December 14th, 2008|CONSOLIDATION, DOCUMENTS, IAS 2, IAS 21, IFRS|0 Comments

ForEx affect on construction revenue

Dear Gents, I have an inquiry regarding the FroEx for construction contracts, if I won a contract in Euro and my functional currency is USD, shall I fix the exchange rate at the time of signing the contract and and every month will calculate revenue based on POC using this fixed rate or shall I [...]

By |August 28th, 2008|IFRS|0 Comments

IAS 23 Borrowing costs – Forex differences

If the entity’s policy is to capitalise borrowing costs and obtains a foreign loan probably taking advantage of the lower interest rates, any exchange differences should be capitalised as will during the period of construction of the qualifying asset. Regards, Nyasha […]

By |August 28th, 2008|IFRS, OTHER IFRS|0 Comments

IAS 23 Borrowing costs – Forex diffrences

As per the amended IAS 23, all borrowing costs on qualifying assets should be capitalised (no option to expense). Does exchange differences on foreign currency loans qualify as borrowing costs to be capitalised? Best regards Allan Hi Allan To my understanding any positive/negative FX difference is expensed directly to the P&L. Regards, Marc The change to [...]

By |August 28th, 2008|IFRS|1 Comment