09 June 2010
As per AS-11,exchange rate for any transaction should be the rate on the transaction date.But many don't adhere to this rule. i.e they either take the rate mentioned in shipping bill or book sales as per payment advice recd from bank & thus no question of exchange gain or loss.This is because either they are not aware or find it difficult to get the rate as on transaction date.So how should we verify that the rate is of the transaction date ? What sources or proof is available as an auditor to verify the transaction rate?
10 June 2010
As per auditing rules auditors varifive to the transaction rate should be sales date . Its taken from Exim rate (www.exim.net) or shipping bill
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