Page 21 - Chapter 22 - Foreign Exchange (Cont.)

Affected Contract

Acc: Cash

flow hedge
= FEC

 Entered into as hedge for loan, advance or debt and

 Loan, advance or debt not yet incurred or granted prior to end of

YOA and

 Where loan, advance or debt

 Applied to acquire an asset or finance expenditure; or

 Arises from the sale of an asset or rendering of services

Will only affect
Calculate exchange rate

gain/loss from when taxable income
once debt have
entered into FEC
been incurred

 Ruling exchange rates:

Transaction End of YOA Realised

FEC (Affected Forward rate Forward rate Spot rate

contract)