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Gold Times runs an import-export business by procuring raw materials from one country and supplying finished goods, therefore must make foreign currency payments. Given

Gold Times runs an import-export business by procuring raw materials from one country and supplying finished goods, therefore must make foreign currency payments. Given global economic conditions, exchange rates might significantly fluctuate. Gold Times may have to make more payments to its creditors than its actual cost. Required: Referring to conceptual framework, discuss whether Gold Times should identify and recognize these possible additional payments due to the fluctuation of exchange rates as a liability?

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