NYC Companys exports bicycles from Australia to Singapore. On 1 March 2021 NYC Companys financial statements for the year ended 31 December 2020 were authorised for issue. At 31 December 2020 the entity had significant unhedged foreign currency exposures. By 1 March 2021 a significant loss had been incurred on these exposures because of a material weakening of the Singapore Dollar against Australian Dollar, which adversely affects the value of the companys accounts receivables.

Required:

Comment on the accounting treatment of loss on the currency exposure in accordance with the requirements of AASB 110/IAS 10 Events after the Reporting Period.