Page 13 - Chapter 22 - Foreign Exchange (Cont.)
P. 13
Solution – Example
Transaction Realise End of yoa
6.60 6.90 7.00
1 Dec 2012 31 Jan 2013 28 Feb 2013
• Year ended 28 February 2015
Cost of stock [FC100 000 × 6,60 (spot rate)]
Deduction — s 11(a) (R660 000)
Exchange difference (loss)
Debt: FC100 000 × (6.90 – 6,60) (R30 000)
Total deduction in 2015 y.o.a (R690 000)
