• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App


can the exchange gain or loss be declared under Cost of Goods/Sales as the purchase of foreign currency is primarily used to remit funds to import goods from overseas to sell locally - this is trading company.

or should it be declared as administrative expenses or finance expenses ?

For Example - we purchase Coffee from
in IAS 21 - The Effects of Changes in Foreign Exchange Rates by

2 Answers

0 votes
It is up to the management to decide, I dont recall any IFRS rule as to this. Whatever you select, you need to apply that consistently.
by Level 5 Member (25.6k points)
0 votes
I would like to add only one point here, is that if there is any refund policy of the Government or supplier to provide you refund on amount of import during the year,then you must show this in CGS otherwsie it would be depend on management decision.
by Level 5 Member (11.3k points)