banner_ad

AS-11

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
05 April 2010 WHAT ARE THE VARIOUS WAYS OF ACCOUNTING EXCHANGE RATE VARIATION.
Profile Image

DEEPIKA GOEL

Profile Image

DEEPIKA GOEL (Expert)
06 April 2010 You can account for the exchange rate variation or fluctuation in two ways:-

Firstly for monetary transaction for which you are liable to pay or can receive in monetary terms like debtors and creditors. For these kind of transaction or items, you have to calculate exchange rate fluctuation at the end of financial year or value the above items at the closing exchange rate as on last date of the year end. Difference should be transferred to profit and loss account.

Secondly for non-monetary items other than monetary items like fixed assets etc. For these kind of items, you need not to do anything at the year end.

For those transactions settled during the year,exchange fluctuation to be booked in the profit and loss account with actual exchange gain or loss
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details