CERTYNEX IFRS ACADEMY

Cyprès SA, whose functional currency is the euro, has borrowed USD 2,000,000 from a bank, a transaction of pure financing (case facts). At the closing date, the change in the exchange rate gives rise to an exchange loss of EUR 35,000 on this loan. In which category is this loss classified?

In the operating category, like any exchange difference on a foreign currency item.

In the investing category, because an exchange difference is not an interest cost.

In the financing category, like the item that gave rise to it.

In the operating category, because a loss is an ordinary expense.