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Exchange Rate gain

FRS 102 1A

Im doing some FRS1021A accounts. My client has no turnover and a handful of expenses. They also have large cash balances and investmetns.  There is a £5k ER gain on a Euro bank account.  Where would you show this on the P&L?  To put into context, the P&L has about £2k of expenses.    How would you show this on the P&L?  It just looks odd!

 

Thank you

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21st Nov 2018 17:08

Show it as what it is. Exchange gain. What’s odd about that?

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By thomas
22nd Nov 2018 09:52

My software template puts this under sundry expenses under administrative expenses. I wasn't convinced that was the best place. Given its a gain, I wasnt sure whether under 'other operating income' would be better.

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to thomas
22nd Nov 2018 13:26

It might be a loss next year. That’s not a prediction of exchange rate movements, that’s me saying that things change.

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