if i want to convert our profit & loss account and Balance for consolidating with our parent co.s books (which is in US) what exchange rate i need to take for.
1. All b/s items wil be converted by the rate prevailing on the dt of b/s i.e. if b/s is of 31/03/09 than rt prevailing on 31/03/09. But Fixed assets wil be valued at the rt prevailing on the date of purchase less depreciation.
2. As far as P&L a/c is concerned Opening stock wil be converted at the rt on the 1st day of the yr e.g. in above example rt as on 1/4/08. Cl.stock wil be converted at the rt s on 31/03/09. All exps. & Income wil be converted by avg.rate during the year.Abt coversion of purchase & sale I m nt sure,bt soon i'll tel u
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