Foreign Exchange Loss
This query is : Resolved
06 November 2009
Dear Sir Nd Friends ,
while valuing the Creditors at the end of the financial year at the closing rates of currency the company reports a foreign exchange loss , wat wud b the effect of this loss on the o/s balance of creditors , will it b added to their balances nd then shown in the b/s ?
thnx in advance .
while valuing the Creditors at the end of the financial year at the closing rates of currency the company reports a foreign exchange loss , wat wud b the effect of this loss on the o/s balance of creditors , will it b added to their balances nd then shown in the b/s ?
thnx in advance .
06 November 2009
Pl see companies (Accounting Standards) Amendment Rules,2009 in the following link.
https://www.caclubindia.com/notice_circulars/notice_list_detail.asp?notice_id=1918
https://www.caclubindia.com/notice_circulars/notice_list_detail.asp?notice_id=1918
06 November 2009
Suppose creditor is shown on purchase date as
Purchases a/c. dr (1000*46).....46000
to Sundry Crs 46000
The Following 2 entries are passed at the end of the yr when Exchange rate is 48.
Prov for Loss on Foreign Ex A/c..Dr 2000
to Sundry Cr 2000
PL Dr.................... 2000
to Prov for Loss on FE 2000
Suppose creditor is shown on purchase date as
Purchases a/c. dr (1000*46).....46000
to Sundry Crs 46000
The Following 2 entries are passed at the end of the yr when Exchange rate is 48.
Prov for Loss on Foreign Ex A/c..Dr 2000
to Sundry Cr 2000
PL Dr.................... 2000
to Prov for Loss on FE 2000
06 November 2009
Respected Warrier Ji,
what happens if the asset or liability is not a long term foreign currency monetary item. as creditors is a current liability and in most of the cases the age og a creditor is far less than 12 months.
Please express your valuable opinion.
what happens if the asset or liability is not a long term foreign currency monetary item. as creditors is a current liability and in most of the cases the age og a creditor is far less than 12 months.
Please express your valuable opinion.
06 November 2009
Sanjay Sir
In that case Mr. Anand Sarda's view can be adopted.
In that case Mr. Anand Sarda's view can be adopted.
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