“exchange difference” means the foreign exchange gain or foreign exchange loss in respect of an exchange item during any year of assessment determined by multiplying such exchange item by the difference between –

 

(a)     the ruling exchange rate on transaction date in respect of such exchange item during that year of assessment, and –

 

(i)      the ruling exchange rate at which such exchange item is realised during that year of assessment; or

 

(ii)     the ruling exchange rate at which such exchange item is translated at the end of that year of assessment; or

 

(b)     the ruling exchange rate at which such exchange item was translated at the end of the immediately preceding year of assessment or at which it would have been translated had this section been applicable at the end of that immediately preceding year of assessment, and –

 

(i)      the ruling exchange rate at which such exchange item is realised during that year of assessment; or

 

(ii)     the ruling exchange rate at which such exchange item is translated at the end of that year of assessment;