Exchange effect while valuation of Inventory
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 January 2011
Dear Sir/Madam,
I have made the payment to vendor of 100 dollars @ Rs. 44 per dollar.
When my GRN was made the rate was 46 per dollar.
When the Bill was booked it was 47 per Dollar.
The question is:- How will I give effect of Rs. 3 per dollar (i.e. 47-44).
Will I charge to P&L, or will I have to load the cost to material, or some part effect is to be given.
Kindly guide.
Thanks in Advance
I have made the payment to vendor of 100 dollars @ Rs. 44 per dollar.
When my GRN was made the rate was 46 per dollar.
When the Bill was booked it was 47 per Dollar.
The question is:- How will I give effect of Rs. 3 per dollar (i.e. 47-44).
Will I charge to P&L, or will I have to load the cost to material, or some part effect is to be given.
Kindly guide.
Thanks in Advance
01 February 2011
AS per AS 11 Inventory is a non-monetary items and Exchange varation is not applicable.
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