Hello Everyone,
Need some help on one of the basic concepts in accounting.
We have a foreign currency loan in our books of Accounts. This loan was carried forward from FY 2012-13.
Amount of loan - say USD 1.
At the time of closure of accounts on Mar 31, 2013 it was valued on the closing rate prevailing on 31, Mar 2013 say Rs 55/USD.
During the FY 2013-14, company have earning in foreign currency and has paid this foreign currency loan through its EFC account on 30.06.2013 (on this date rate of exchange was Rs 60/USD).
Now, is it required to book the currency loss/gain arrising due to rate fluctuation (ie Rs 5 loss) between 31, Mar 2013 and 30, June 2013 even though the foreign currency loan was repaid in foreign currency only??
CAclubindia
