Decision # 1/893

The Ministry of Finance’s decision # 1/893 dated 31 December 2020 has finally acknowledged the difference of exchange resulting from the purchase of goods or assets in foreign currencies at the parallel market rate. According to this MOF decision, this difference of exchange should be added to the cost of the goods in the Profit & Loss statement or to the cost of the asset in the Balance Sheet accounts. Any pending difference of exchange on goods or assets in progress or stock not yet sold at the closing date of the financial statements should be recorded in a separate Balance Sheet account “Difference of Exchange-Assets or Liabilities” until this good is sold.