Page 23 - Chapter 22 - Foreign Exchange

5 Steps to calculate gains/losses relating to foreign

exchange transactions:

Identify the TP and

make sure he/she

qualifies for s 24I ?

ID the type of exchange item

Determine the different dates and the ruling
exchange rates on these different dates.

Convert the cost of the underlying item ito s 25D

Calculate the foreign exchange difference (gain/loss)