( Author )
16 June 2012
the firm in the question is 100% EOU. as on 31/03/12 he has got debtors(foreign buyers) outstanding on his balance sheet. the firm has recorded exports @ 49 USD. The has entered into forward contract of USD @51 in April. But on 31/03/12 exchange rate is 51.8521.
so, now the question arises what should be the treatment of foreign exchange difference under AS 11?
Kindly give any reference for the answers.
thankx in advance.