Purchasing in PKR, paying through $ account IAS 21

[Shahzad09]

Hello everyone,

My question is regarding IAS 21 treatment.
Can best be understood by an example.

Organization functional currency is USD (policy is to convert PKR to USD using last week avg. rates)

If inventory is purchased for PKR 800 and paying through USD bank account

-----------------PKR------Ex.rate used-------------USD
Exchange loss--------------------------------------0.126
Purchases---------800-------80-(last week avg)-------10
----Bank USD----------800---79*--------------------------10.126

*Exchange rate provided by the bank for the payment

<b>OR</b>

------------------PKR------Ex.rate used------------USD----
Purchases---------800---------79*------------------10.126
-----Bank USD---------800-----79*----------------------10.126

Which one is the right treatment in that case ?

Your response will be highly appreciated.