Still, we found that the difference occur only with transcation to Itochu Plastics Pte, which the company used Citi Bank rate to record the advacned payments. Furthremore, the gain/loss which occur when the inventory is received, is recorded as other income, which result in the same amount of net income as when the difference is properly included in the costs of inventoty received. Inventory balance as at 31 Dec 2012 was affected from this exchange gain/loss however, it was immaterial.
Moreover, we will conduct further testing at our year end audit to measure the impact of this record to inventory.