Dear Friends,
Consider a purchase of USD 1,00,000/- by a propreitorship. The purchase was made on 02nd February 2013. Rate as on 02nd February is 58.20 INR. Value of purchase is therfore INR 58,20,000/-. On March 31st 2013 the value of USD = 60.20 INR and When the payment was made in 25th June 2013 the rate was 56.20. Usually the loss will be recorded for the financial year ended 2013 and the gain would be then recorded in next financial year. Now my question is " How will we record or should we record if the rate as on 31st March 2013 was 56.20 and 25th June 2013 was 60.20. As per AS 11 is there any provision not to record the gain arising out of foreign exchange fluctuation.??"
CAclubindia
