Exchange Rate

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Nazir (Querist)

19 August 2009 Hi,

if i want to convert our profit & loss account and Balance for consolidating with our parent co.s books (which is in US) what exchange rate i need to take for.

1. Profit and Loss Items.
2. Balance Sheet Items.

is any AS having information about it???

Regards,
Nazir

CA Binal Shah

CA Binal Shah (Expert)

20 August 2009 Hi,

1. All b/s items wil be converted by the rate prevailing on the dt of b/s i.e. if b/s is of 31/03/09 than rt prevailing on 31/03/09. But Fixed assets wil be valued at the rt prevailing on the date of purchase less depreciation.

2. As far as P&L a/c is concerned Opening stock wil be converted at the rt on the 1st day of the yr e.g. in above example rt as on 1/4/08. Cl.stock wil be converted at the rt s on 31/03/09. All exps. & Income wil be converted by avg.rate during the year.Abt coversion of purchase & sale I m nt sure,bt soon i'll tel u

Have a nice day!!

CA Binal Shah

CA Binal Shah (Expert)

20 August 2009 Hi refer following links. It wil help u out.

1.https://www.caalley.com/as/as11_revisednew.pdf
2.https://www.indiacorplaw.com/AS%2011.pdf

Bye....

Nazir

Nazir (Querist)

20 August 2009 Thanks Binal...

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