Hello friends...
Just had a doubt worth your attention....
As an exporter of goods, I book my Sales on consignment basis as per the forex rate as on date.
I receive payment in foreign currency in my EEFC account been maintained with Indian bank. Later I transfer those foreign currencies into Indian Rupee at the rate prevailing on the date of such conversion.
On such conversion, I alter my Sales figure accordingly to match it with realised amount. Thus there's no forex gain/loss been booked at all on Sales.
I know this is against the normal practice. But can any paragraph of AS 11 specifically be quoted which would term the said practice wrong? I mean is it legally incorrect?
CAclubindia
