Whether advance foreign remittance (100% of the contract value) for import of materials will be a monetary or non-monetary item (as per AS 11 (revised 2003)) and whether it will be required to be reported at Closing Rate at the balance sheet date in case the materials are not received by march 31?
To my mind it is non-monetary item since though an asset, there is no amount of money which is to be received against it (as per defination of Monetary items), but what will be received are the materials.
Pl advice. Regards
CAclubindia
