Purchasing in PKR, paying through $ account IAS 21

[Shahzad09]

Dear Kamran,

Thanks for taking my question into consideration.

Basically the purchase is made in Rs. and like in EPZ there is a concept of NR cheque, the bank debits your dollar account and issue a Rs. cheque in favour of the supplier. (converting at its treasury exchange rate)

Usually when we enter PKR purchases in our erp, it automatically converts PKR into $ using last week average rate (as per company policy).

Now on the otherside when we credit our usd account for the payment, the actual dollar comes to $10.126 (using bank exchange rate) as mentioned in above example.

So there exist a question, shall we account for exchange gain and loss as there a difference in figures of $ amount ?

(Consider no gap between purchase and payment)

Thanks !