AS 11 treatment

This query is : Resolved

CA.Balakrishnam.V

CA.Balakrishnam.V (Querist)
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02 July 2009 as difference in foreign exchange rate should be charged to p&l a/c, one of my listed company client is adjusting such foreign exchange credit balance to sales a/c. saying that it ultimately charged to p&l a/c. is the treatment right?

chetan soni

chetan soni (Expert)
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02 July 2009 Yes, the treatment is right. Provided theis gain/loss occured on account of sale tramsactions.

As 11 is not stoping to credit such gain/loss to be charged to such respect account.

Praveen Sharma

Praveen Sharma (Expert)
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02 July 2009 charged to p&l a/c

NISHIT A. DOSHI

NISHIT A. DOSHI (Expert)
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03 July 2009 it has to be charged to p&l a/c .otherwise it is the violation of as-11 and requires qualification from the auditor.

with regards,
C.A.NISHIT DOSHI