Transaction in foreign currency

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This query is : Resolved

mahavir (Querist)

21 June 2008 one of client is exporting and whatever outstanding as on 31st march is required to be converted at the dollar rate as on 31st march.What AS says- pls clarify

Jitender

Jitender (Expert)

21 June 2008 as -11 will apply.
& it is to be re-stated.

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)

21 June 2008 AS-11

Convert all

Opening Current Assets & Current liabilities at opening rate

Closing Current Assets & Current Liabiities at Closing rate

Transations during the year (Expenses/Incomes) at average rage

Transactions between HO & Branch should be converted on the actual amount realised or spent

Long term liabilities & Fixed Assets should be converted at the rate prevailed on the date of contracting that liability or acquisition of asset

Difference in converted Trial balance should be taken to P & L account as a Gain or Loss in Exchange

Tarun Gupta

Tarun Gupta (Expert)

23 June 2008 Yes it should be reinstat at closing rate

Chintan Gajjar

Chintan Gajjar (Expert)

23 June 2008 yes it is Correct. As per AS-11 (A/c for Foreing Ex. Rates Fluctuation)Foreign Exchane Payable / receivable should be marked to market on 31/03/2008.

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