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Foreign exchange


01 August 2014 We bought a machine in another country for R15 000 through our financial institution (Bank) , but when the machine was finally delivered the amount was now R10 000.00 . What is the proper accounting treatment of the difference of R5 000?

We are the government institution not involved in the foreign exchange trading .

02 August 2014 This is to be accounted as exchange gain

But 50% decrease on account of exchange rates are odd, I hope the numbers used are only for example



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