Will exchange rate valuation be made at the end of the period for foreign currency advances sent to suppliers abroad and current account balances?
Yes, exchange rate valuation will be made at the end of the period for foreign currency advances.
When advances received or given for future deliveries of goods or services are in foreign currency, exchange rate differences should be calculated at the end of the period and taken into account in determining the profit.
Exchange rate differences arising from the valuation of advance accounts given for transactions within the scope of purchases of goods from abroad should be taken into account in determining the profit related to this transaction.
In addition, exchange rate difference calculation will be made for advances received for export of goods or services abroad.
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
