As-11

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Vipul (Querist)
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05 June 2015 My client a limited Company has made advance payment of Rs. 10,00,000/- to his client in United States in January' 2015 in dollars, for material to be received in May'2015. No more payment is to be done now. The expense shall be booked in May'2015 when material & invoice shall be recd. Now on 31.3.2015 should the advance payment be converted on rate prevailing on 31.3.2015 or not as per AS-11. Kindly help.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 June 2015 when the amount is paid in may 2015 then why adjustment is to be done in march 2015?

on 31.3.2016 the exchange rate fluactuations if any should be adjuste in profit and loss a/c.

Vipul

Vipul (Querist)
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05 June 2015 Payment already done in January'2015 in advance. Receipt of material is only pending. Should this advance payment be adjusted for rate as on 31.3.2015. As it will only be a notional gain or loss.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 June 2015 yes then to the extent payment made in jan 2015 u need to make adjustment for exchange fluactuations if any as on 31.3.2015

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