As-2 & losson forign exch loss
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 January 2012
FACT:-
Assessee is doling bus of importing purchase.
can loss on a/c of payment to creditors of inventory be charged to costing to inventory?
please give explanation ?
Assessee is doling bus of importing purchase.
can loss on a/c of payment to creditors of inventory be charged to costing to inventory?
please give explanation ?
CA PARAS BAFNA
(Expert)
15 January 2012
As per AS-11, you have to report the creditors in Foreign currency into INR.
The rate to be taken will be the Closing Rate on the reporting date .. i e as on 31st March.
.
The difference if any arising due to change in exchange rate has to be shown in Exchange Rate Difference A/c.
.
The Inventory amount is not required to be changed. It is considered as non-monetary item and has to be shown at historical cost i.e.at the rates prevailing on the date of transaction.
The rate to be taken will be the Closing Rate on the reporting date .. i e as on 31st March.
.
The difference if any arising due to change in exchange rate has to be shown in Exchange Rate Difference A/c.
.
The Inventory amount is not required to be changed. It is considered as non-monetary item and has to be shown at historical cost i.e.at the rates prevailing on the date of transaction.
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