Accounting of fx gain or loss on foreign bank balance
This query is : Resolved
28 April 2016
Hello everyone,
Please help me out
I have one Query; while accounting of Foreign exchange gain or loss on Foreign cash and cash equivalent what is the correct treatment
say at the end of the month I have $50 in my bank account and reporting currency is INR so whatever gain or loss arises according to exchange rate at the month end, whether it would be our realized gain or loss OR unrealized, as if it is realized gain or loss then we will not reverse it in next month , but if it is Unrealized then we will pass a reversal entry at the beginning of the month,
please let me know the correct treatment as in my company for some countries they are reversing it and for some they are not passing reversal entry.
Please help me out
I have one Query; while accounting of Foreign exchange gain or loss on Foreign cash and cash equivalent what is the correct treatment
say at the end of the month I have $50 in my bank account and reporting currency is INR so whatever gain or loss arises according to exchange rate at the month end, whether it would be our realized gain or loss OR unrealized, as if it is realized gain or loss then we will not reverse it in next month , but if it is Unrealized then we will pass a reversal entry at the beginning of the month,
please let me know the correct treatment as in my company for some countries they are reversing it and for some they are not passing reversal entry.
28 April 2016
It is unrealised gain or loss.
Message likes :
1 times
28 April 2016
How? can you please clarify and provide reference of applicable IAS or Ind AS
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- Booth for sales promotion
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- FEMA regulation Act. for inward remitance
- GST ON TRAVELLING BILLS
- F & O PROFIT REPORTING FOR AY 2026-27
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
