Most discussions about exchange rate fluctuations seem to centre around differences due to time lags, e.g. the delay between being invoiced and making the payment.
But what if the difference in exchange rate is not due to any time delay but is due to, for example, the credit card company choosing a rate which is different to any 'standard' rate generally accepted by HMRC?
Is the difference handled in the same way as with time delays, i.e. post to Forex Gain/Loss?
So hows about an intro before we start. We always ask newbies!
Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.
Who is your ML cover and practice licence with?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I'm an AAT Bookkeeping Student (started a few weeks ago), based in London. Before this I was a software developer for more years than I care to remember!
Having maintained my own Sole Trader accounts for a few years I decided I'd like to feel more confident about what I was doing and also to embark on a new career - hence the AAT course.
Many answers to bookkeeping questions can be found by Googling them, but one or two, such as this one, are harder to find answers to. I hope someone will be able to help!
I'm doing AAT Levels 2 & 3 Bookkeeping course with an online training company.
As for accounting standards, I'm just looking for whatever is acceptable to HMRC on my Self Assessment I haven't actually covered formal standards on the course yet.
-- Edited by Andre on Wednesday 6th of June 2018 09:26:51 AM
Shaun
Can you please remove this link for the worst training provider there is (the new name for Home Learning)
Sorry to say that when you've signed up for the course Andre, but there are a hell of a lot of students all complaining about them and I've had my own run with them, albeit a number of years ago.
Apparantly they've won AAT training body of the year, which as far as I'm concerned (and I told them so) has meant they have lost all credability on the awards front on that score.
So, Andre, so on what basis are you preparing the accounts, as let's face it they should be done before the self assessment, as the tax treatment follows the accounting treatment. If not, then you should be getting an Accountant. It isn't about what is acceptable yo HMRC, it is about what you must do under law, and HNRC do not set the law, plus often interpret it incorrectly in their advice notes/guides etc.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Link to the offending training company has been duly removed.
I'm preparing the accounts on an Accrual basis.
As far as I can see, the difference in exchange rate (between what the credit card company charges and what the 'standard' rate is) could either be allocated to Bank Charges or Foxex Gain/Loss or Capital Gains. As you can see, I'm confused and this is why I've posted to this forum.
As for accounting standards, which one should I be following for Sole Trader accounts with minimal turnover?
Perhaps I've just opened a can of worms and you can't help me!
Link to the offending training company has been duly removed.
I'm preparing the accounts on an Accrual basis.
As far as I can see, the difference in exchange rate (between what the credit card company charges and what the 'standard' rate is) could either be allocated to Bank Charges or Foxex Gain/Loss or Capital Gains. As you can see, I'm confused and this is why I've posted to this forum.
As for accounting standards, which one should I be following for Sole Trader accounts with minimal turnover?
Perhaps I've just opened a can of worms and you can't help me!
Not quite sure what the part in red means, but it does appear that patience isnt a virtue held as the OP has deleted their account.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Link to the offending training company has been duly removed.
I'm preparing the accounts on an Accrual basis.
As far as I can see, the difference in exchange rate (between what the credit card company charges and what the 'standard' rate is) could either be allocated to Bank Charges or Foxex Gain/Loss or Capital Gains. As you can see, I'm confused and this is why I've posted to this forum.
As for accounting standards, which one should I be following for Sole Trader accounts with minimal turnover?
Perhaps I've just opened a can of worms and you can't help me!
Not quite sure what the part in red means, but it does appear that patience isnt a virtue held as the OP has deleted their account.
Saved me a job then!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I haven't actually covered formal standards on the course yet.
