Foreign exchange gain
This query is : Resolved
20 January 2012
Is translation of balance in bank accounts denominated in foreign currency realised or unrealised?
The invoicing is done in USD and the receipts from customer have been deposited in USD account. From USD account to INR account, funds are being transferred based on the requirement. Now, as on year end close, the balance in USD bank account is being translated to INR at the closing rate. Is this realized or unrealized? If unealized?
The invoicing is done in USD and the receipts from customer have been deposited in USD account. From USD account to INR account, funds are being transferred based on the requirement. Now, as on year end close, the balance in USD bank account is being translated to INR at the closing rate. Is this realized or unrealized? If unealized?
CA PARAS BAFNA
(Expert)
21 January 2012
Unrealised means what is still to be realised.
.
Realised means on which you can exercise your control. You can utilise it. Which is really with you.
.
Balance is in USD. It is in your account. It is realised. Its not different from money lying in your INR A/c.
.
Realised means on which you can exercise your control. You can utilise it. Which is really with you.
.
Balance is in USD. It is in your account. It is realised. Its not different from money lying in your INR A/c.
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