20 August 2011
The rate applied varies from entity to entity, depending upon their policy. However, generally it should be the rate prevalent at the time when risk & reward related to goods have passed to the buyer as per contract.
If the contract is silent as to the passing of risk, then following rule should be applied:
1. FoB sales - Dt of Bill of Lading would be date of passing risk. Hence rate at that date should be applied.
2. CIF sales - When revenue os recognised generally Invoice date (please check)
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