Exchange rate urgent ?
This query is : Resolved
19 November 2012
dear sir,
i have one query regarding booking of invoices if suppose we received some invoices from overseas party
suppose
date amount
5.10.2012 ( 1000 usd )
8.10.2012 ( 2000 usd )
exchange rate on that day suppose rs. 50 & 51 and suppose i forgot to book all the invoices on time and i booked on 2.11.2012 ( and suppose exchange rate was rs. 55/- on 2.11.2012)
so which exchange rate i used for conversion & why? invoice booking date i.e ( 2.11.2012 ) or the same rate on which invoice raised ( i.e 5.10 & 8.10.2012 )
expert pls reply thanks
i have one query regarding booking of invoices if suppose we received some invoices from overseas party
suppose
date amount
5.10.2012 ( 1000 usd )
8.10.2012 ( 2000 usd )
exchange rate on that day suppose rs. 50 & 51 and suppose i forgot to book all the invoices on time and i booked on 2.11.2012 ( and suppose exchange rate was rs. 55/- on 2.11.2012)
so which exchange rate i used for conversion & why? invoice booking date i.e ( 2.11.2012 ) or the same rate on which invoice raised ( i.e 5.10 & 8.10.2012 )
expert pls reply thanks
19 November 2012
The rate prevailing on the date of purchase of goods is to be considered for conversion of USD into RS.
Which means USD 1 =Rs. 50 and 51 on 05/10 and 08/10 respectively
Which means USD 1 =Rs. 50 and 51 on 05/10 and 08/10 respectively
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19 November 2012
dear amit sir,
but in as-11 in which para it is mentioned
please help
but in as-11 in which para it is mentioned
please help
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20 November 2012
As per Para 9 of AS 11-Foreign currency transaction should be recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
The date of transaction is the date of invoice and not when you book it in the books of accounts
The date of transaction is the date of invoice and not when you book it in the books of accounts
20 November 2012
The date of transaction would be, as per generally accepted accounting principles, the date on which buyer obtains significant risks & rewards of ownership in the goods which is generally the invoice date but can not be the date on which the transaction is recorded in the books.
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20 November 2012
thank u very much sir
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