Selection of exchange rates

This query is : Resolved

Niranjan K.V. (Querist)
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30 August 2008 In preparation of accounts related to foreign branches which exchange rate should be used with regard to:-

a)fixed assets

b)depreciation

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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30 August 2008 Foreign branch accounts will be coverted into INR, for the purposes of consolidation, using the exchange rate prevailing on the date the accounts are consolidated. Please remember that the original branch accounts will always be in the currency of the land and the conversion is for consolidation or attachment only.

CA MOHIT VAATS

CA MOHIT VAATS (Expert)
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30 August 2008 Dear Mr.Srinivasraghavan,

As far my knowledge concern the exchange rate on fixed assets shall be the date when the assets was purchase not the date of consolidation....(Refer.AS-11)

Depreciation will be on the average rate prevailing at the time of consolidation...

Ranjit Ahluwalia

Ranjit Ahluwalia (Expert)
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30 August 2008 For Recording the transaction, May be you can use TTB of SBI on date of transaction as per Rule 26. But for year consolidation, you need to revalue all foreign currency denomtated assets and liabilties on rate of Balance Sheet.

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