Accounting standard 11- advance payment
This query is : Resolved
23 May 2014
Will there be any exchange gain/loss in import purchase if I have paid the amount in advance?
eg. Suppose I have paid 100$ at Rs.60 in advance, and at the time of invoice the exchange rate is Rs 65 per $. Now at what exchange rate should I book my invoice?
Whether @ Rs 60, resulting in no loss/gain as the amount is already paid, or at Rs 65 resulting in exchange loss, as my liability incurred at Rs 65/ dollar rate.
Kindly suggest the proper treatment as per AS-11.
eg. Suppose I have paid 100$ at Rs.60 in advance, and at the time of invoice the exchange rate is Rs 65 per $. Now at what exchange rate should I book my invoice?
Whether @ Rs 60, resulting in no loss/gain as the amount is already paid, or at Rs 65 resulting in exchange loss, as my liability incurred at Rs 65/ dollar rate.
Kindly suggest the proper treatment as per AS-11.
Vishnu Saboo
(Expert)
01 June 2014
rate on date of material received must be booked. diff to be charge in FE gain/loss account.
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