Just before and start of Ukraine war, shipments were effected by Lithunia based foreign exporters. Meanwhile, sanctions declared by USA,FATF,EURO on banking operation of some directors of this company coming in to force, Indian importer could not make all the payments,as money remitted from India got stuck at US$ clearing. 3 months detention,demurrage costs of containers run in to 70% of cargo values additionally. How to treat this charges vis a vis AS, accounting guidelines.. though some cargoes contain capex and revenue items but demurrage charges payable to shipping lines is revenue in nature. But then spends will be very high.
Kindly guide.
CAclubindia
