one of our freind asked me regarding the accounting procedure of difference
in rate in foreign exchange payments.
Example:
June 16,09 Purchase from Korea 11525USD @ 47.90/USD
But payment made on 23.08.09 @ 46.87/USD
Kindly advice the accounting procedure for the difference.
Foreign Exchange Diff. will be credited to P&L A/c
hi...
for details ... pl. ref. Accounting Standard -11. it ll help u..Files attached
Foreign Exchange Fluctuation is covered under AS 11 and willbe accounted in P & L A/c.
Foreign exchange difference Rs. 11870.75 shall be credited to P&L A/c
suppose i have purchased goods worth 50000 US $ @ 44.25 INRon 22/02/2011 but payment made in different financial year say 22/05/2011 so what will be the tratment in year 2010-11. should i make any provision and if yes what will be the base for it.........please explain me with example?
CAclubindia
