LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Foreign Exchange Rate Difference -Accounting

William Peter.a (CA Final ) (179 Points)

30 December 2009

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.

Reply
Follow
Share

5 Replies

ashish gupta ( student) (1922 Points)
Replied 30 December 2009

Foreign Exchange Diff. will be credited to P&L A/c

ganapathy.b (CA FINAL STUDENT Senior Accountant) (51 Points)
Replied 30 December 2009

hi...

for details ... pl. ref. Accounting Standard -11. it ll help u..Files attached

Attached File : 43 as 11 12 13 18 19 20 25 revised.pdf downloaded: 713 times

Shudhanshu Agrawal (Business) (2570 Points)
Replied 30 December 2009

Foreign Exchange Fluctuation is covered under AS 11 and willbe accounted in P & L A/c.

CA Samkit Shah (Service ) (38 Points)
Replied 12 January 2010

Foreign exchange difference Rs. 11870.75 shall be credited to P&L A/c

mayank kothari (Article Assistant) (35 Points)
Replied 23 June 2011

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?