Foreign currency translation of monetary items

Chinnam Madhav (Article assistant) (51 Points)

15 June 2016  

I have some foreign payables due on balance sheet date. As per AS-11  I need to transalte these payments at closing rates.

However i have in agrrement with customers so that if any loss on foreign exchange will be borne by my customers.

So do i need to translate at balance sheet rate, even if my loss is borne by customers?