Dear Sir Nd Friends ,
while valuing the Creditors at the end of the financial year at the closing rates of currency the company reports a foreign exchange loss , wat wud b the effect of this loss on the o/s balance of creditors , will it b added to their balances nd then shown in the b/s ?
| Originally posted by :Dharmesh k. Dubey | ||
| " | Dear Sir Nd Friends , while valuing the Creditors at the end of the financial year at the closing rates of currency the company reports a foreign exchange loss , wat wud b the effect of this loss on the o/s balance of creditors , will it b added to their balances nd then shown in the b/s ? |
" |
In case of Non-integral Foreign Operations -
All resulting exchange differences should be accumulated
in a foreign currency translation reserve until the disposal
of the net investment.
In case of Integral Foreign Operations -
Exchange difference should be recognized as income or as
expenses in P&L account.
yes exchange fluctuation loss shall be debited to profit & loss a/c and the amount of creditor shall be increased.
CAclubindia
