MoF Decision No. 893/1 dated 31/12/2020 acknowledging the difference of exchange resulting from the purchase of goods or assets in foreign currencies at the black market rate.

The Ministry of Finance (MoF), has issued and published the here below Decision No. 893/1 dated 31/12/2020 which acknowledges the difference of exchange resulting from the purchase of goods or assets in foreign currencies at the black 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. It has to be recorded in the revenues of the seller as well.

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.

This is a first step made by the MOF to ease the business in Lebanon in this hyperinflation environment, hoping other decisions will be made to further clarify this major issue that the Lebanese companies are facing among other problems resulting from the current financial and economic crisis.

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