Accounting for foriegn exchange fluctuation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 May 2015
Sir,
I have a doubt on whether foriegn exchange fluctuation has to be accounted for in this following case:
The party in London has sent his bill in GBP on 30/4/2015. Invoice was received by us on 4/5/2015. We booked expense in INR on the date of receipt of invoice and payment was made on the same day, i.e, 4/5/2015 in INR.
In this situation will my have company have to book Exchange rate fluctuation as on 4/5/2015?
I have a doubt on whether foriegn exchange fluctuation has to be accounted for in this following case:
The party in London has sent his bill in GBP on 30/4/2015. Invoice was received by us on 4/5/2015. We booked expense in INR on the date of receipt of invoice and payment was made on the same day, i.e, 4/5/2015 in INR.
In this situation will my have company have to book Exchange rate fluctuation as on 4/5/2015?
CMA Ramesh Krishnan
(Expert)
15 May 2015
It is not based on the bill received date or bill date, exchange rate has to be considered based on the actual transaction date
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