Gov/47207/25°
H.K.
18
4
In 1923 the Exchange Account disappeared and
all exchange transactions were carried through the
new "Adjustment of Exchange Account" and the balance
ultimately transferred to the "Revenue and Expenditure
Account"
The Director of Colonial Audit having .
queried these arrangements, the matter was referred
home, The Secretary of State ruled (despatch of
26th November 1925) that it was correct to carry
the profits or losses on exchange in ordinary day-to-
day transactions (e.g. Advances, Deposits, Family
Remittances, Passage Refunds etc.) to an "Exchange
Account," the balance of which at the close of the
year is carried to Revenue or Expenditure as the case
may be.
As regards increases or decreases in value
of sterling investments as converted periodically into
dollars for the sole purpose of record in the Accounts,
the Secretary of State considered that these were not
strictly revenuear expenditure, with the proviso that,
in accordance with Colonial Regulations 309 (now 291),
any actual profit or loss resulting from realisation
of such investments or funds should be carried to
revenue or expenditure. In future increases or
decreases in the dollar value of sterling investments
or funds held by the Crown Agents should be carried
to the "Adjustment of Exchange Account," introduced
in 1922, and the balance of this fund should be carried
forward from year to year, appearing as an asset or a
liability as the case may be in the Annual Balance
Sheet of the Colony.
The question of military
contribution