here under the temporal method, the net exposure is Net monetary liability.
Since the USD/MXN exchange rate is falling fr0m 0.0625 to 0.0513, it’s clear that Local currency is falling there will be foreign exchange gain.
why we are not calculating it as ( 224+33 )* 0.0513? that is net exposure * current rate?
Please explain?
https://forum.sseiqforum.com/question/sunjet-airlines-case-scenario/
Ayushi please refer to the attached link.