Page 24 - Chapter 22 - Foreign Exchange

22.2.4. CALCULATION OF EXCHANGE DIFFERENCES [s 24I(1)]

Foreign exchange gain/loss =

Amount of the relevant exchange item

multiplied by

difference between the ruling exchange rates

on the different dates

Four possible situations may occur, namely:

1. acquired and realised 2. Acquired but not realised

during the current yoa during the current yoa

3. acquired in earlier yoa and 4. acquired in earlier yoa but not

realised during current yoa realised during the current yoa