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Is a foreign currency gain or loss an adjustment event?

April 26, 2017adjustment currency event foreign gain loss

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Is a foreign currency gain or loss an adjustment event?

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No. An adjustment event does not exist when you make a foreign currency gain or loss. This is outlined in Paragraph 39 of GST Ruling GSTR 2000/19 ‘Making adjustments under Division 19 for adjustment events’, which states: ‘when payment for the supply occurs, the rate of exchange may be different from that used for GST attribution purposes.