AS 2 & AS 11
This query is : Resolved
04 August 2009
which is the relevant rate of foreign exchange rate if a copany hold raw materilas at closing balance sheet date? the purchase price is in foreign currecy and not settleed at closing balance sheet date and our actula cost as per AS 2 is still @ foreign currecny
which is the relevant rate of foreign exchange rate if a copany hold raw materilas at closing balance sheet date? the purchase price is in foreign currecy and not settleed at closing balance sheet date and our actula cost as per AS 2 is still @ foreign currecny
05 August 2009
As per AS-2 the raw material should be valued at the cost which is incurred to bring it to the current location. As the raw material was purchased in foreign exchange and all the costs incurred is also in foreg=ign exhange so while valuing the stock the exchange rates of the dates when such costs were incurred is to be taken.
Now, the question is at the BS date - no change in rate will be taken into consideration as the cost has already been converted into local currency.
The account not being settled will have effect of exchange rate and thus Debtors will be revalued and the difference in foreign exchange shall be trf to P&L A/c
Now, the question is at the BS date - no change in rate will be taken into consideration as the cost has already been converted into local currency.
The account not being settled will have effect of exchange rate and thus Debtors will be revalued and the difference in foreign exchange shall be trf to P&L A/c
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
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- REGARDING GST LIABILITY/....
- STCG FOR GOLD ETFs
- TDS related Query_Liquidated Damages
- Specified Profession
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- 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
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
