Page 25 - Chapter 22 - Foreign Exchange (Cont.)
P. 25
Acquisition Of Assets (A 24I(7))
Special accrual (timing) rule:
• Exchange differences on loans, advances, debts/
FEC that serves as a hedge:
re acquisition, creation... of assets
MUST BE deffered until asset brought into use for trade.
• Manner of calculation:
▫ Once asset brought into use, only then bring
into account current & each of the prior years’
seperate exchange rate differences.
• Should any of the prescribed requirements no longer exist
/ be complied with, the exchange difference may no
longer be deferred but must be brought into account in
that y.o.a.
