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DanielM
Dear Community,
This is my first post. I have researched on Google, but no result.
I have to mention that I am not working in accounting. I am managing the operations in a mixed development (retail and office space) in Myanmar.
Our land lease is in USD, and our lease agreements are in USD. Due to Covid and a military coup in 2021 the local currency's exchange rate went from 1 USD = 1,350 Kyats to 1 USD = 2,100 Kyats.
My question:
In 2019 we permitted a tenant to settle their security deposit in the local currency, Kyats --> 2,000 USD = 2,700,000 Kyats
We sent a payment receipt that states both, USD and Kyats amounts.
The tenant now decides to move out of their retail unit. We have to refund the security deposit.
Which amount must I refund? 2,700,000 Kyats or today's equivalent 4,200,000 Kyats?
Again, all official documents and lease agreements are in USD.
Thank you so much in advance and I am happy to provide further details if required.
I hope this question makes sense in an accounting forum.
edit: Apologies, I just realized I posted in the Tax forum, not the General Accounting.
This is my first post. I have researched on Google, but no result.
I have to mention that I am not working in accounting. I am managing the operations in a mixed development (retail and office space) in Myanmar.
Our land lease is in USD, and our lease agreements are in USD. Due to Covid and a military coup in 2021 the local currency's exchange rate went from 1 USD = 1,350 Kyats to 1 USD = 2,100 Kyats.
My question:
In 2019 we permitted a tenant to settle their security deposit in the local currency, Kyats --> 2,000 USD = 2,700,000 Kyats
We sent a payment receipt that states both, USD and Kyats amounts.
The tenant now decides to move out of their retail unit. We have to refund the security deposit.
Which amount must I refund? 2,700,000 Kyats or today's equivalent 4,200,000 Kyats?
Again, all official documents and lease agreements are in USD.
Thank you so much in advance and I am happy to provide further details if required.
I hope this question makes sense in an accounting forum.
edit: Apologies, I just realized I posted in the Tax forum, not the General Accounting.
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