What is the USD and Euro rate as on 31.03.11 for the purpose of conversion of Accounts payable/ receivable/ advances as on balance sheet date.
Pl. clarify whether two different rate should be taken for accounts payable and accounts receivable on the pertext that bank give two way rate for buying and selling.
Hii Atul,
Closing rates are confimred by banks and different banks have different closing rates with minor differences and while converting if both bid and ask rate are there then we we use bid rate to convert liabilities (to be conservative) and ask rate to convert Assets (again to be conservative). This is the accurate way of translating.
But many compaies use just one rate for translating Assets and liabilities that is also correct.
Regards,
Ankit
CAclubindia
