Exchange Rate Differences

1. Finance assets/liabilities include :

• Cash

• Receivables

• Share Capital

• Bank Loans

• Inventory

2. TRUE/FALSE:

In Sweden, ex. rate differences account is created only in SEK

• TRUE

• FALSE

3. Tama Canada purchased an inventory for 100 EUR.

Functional currency is CAD.

Ex. rate of the invoice = 1.44 EUR/CAD

Ex. rate of the payment = 1.54 EUR/CAD

TRUE/FALSE: The company has an ex. rate loss from this purchase

• TRUE

• FALSE

3.1 The finance item in this transaction is :

• Inventory

• Supplier Liability

• Payment

3.2 What is the income / loss amount ?

• Income of 0.10 CAD

• Loss of 10 CAD

• Income of 10 EUR

• Loss of 100 EUR

What is unrealized ex. rate diff ?

• Ex. rate between the rate of the invoice date and the payment date

• Ex. rate between the rate of the invoice date and the end of month date before the payment

• Ex. rate at the date of the payment x paid amount

Tama Australia purchases goods from European Supplier in EUR.

Tama RMW pays the EUR amount to the supplier.

Tama Australia pays to Tama RMW the converted amount in AUD.

TRUE/FALSE: Tama Australia is exposed to EUR-AUD rate changes.

• TRUE

• FALSE