AS- 11
This query is : Resolved
15 February 2011
I have a debtors of Rs. 100 and for hedging this i took a forward contract of Rs. 150 due to transaction in normal course f business.
So wat will be treatment as per AS-11 on year end in books of A/c??
So wat will be treatment as per AS-11 on year end in books of A/c??
16 February 2011
As per AS-11, Forward Contracts need to be accounted for as below:-
Spot rate - Rs.130 + Premium Rs.20 = Rs.150
Premium has to be amortised over the period of the contract
At year end you may compare the closing exchange rate which is lets say 140.
You then need to book a loss of Rs.40 on current liability and gain of Rs.30 on Forward contract
Spot rate - Rs.130 + Premium Rs.20 = Rs.150
Premium has to be amortised over the period of the contract
At year end you may compare the closing exchange rate which is lets say 140.
You then need to book a loss of Rs.40 on current liability and gain of Rs.30 on Forward contract
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
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR selection for salaries and capital gain less than L
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
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
