Inventory purchased in foreign currency

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Priyanka Namdeo (Querist)
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04 June 2013 Dear Sir,

My client ltd. co has purchased inventory in foreign currency for a plant prior to commencement of operations on 12.5.12

At the time of purchase price was Euro 12500 i.e Rs. 787500. (1 euro = 63 Rs.)

On 31st March 1 Euro = 73

At the time of payment on 13.5.13 it was 1 euro = 71

Company does not make P&L account for the plant as it is not in operation yet.

Please tell me the accounting treatment for stock and Foreign Exchange Gain and Loss as per AS 11.

Priyanka Namdeo

Priyanka Namdeo (Querist)
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21 September 2013 This query is Resolved

Priyanka Namdeo

Priyanka Namdeo (Querist)
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21 September 2013 This query is Resolved