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Ind as 21

27 April 2021

as per Ind as 21 if advance has been recd in respect of sale, then the exchange rate for advance date should be taken to record sales and not the rate on which sale occurs
my querry is we have to disclose fob value of exports in disclosure balance sheet
example -advance recd 3 years ago 6.5 crore(ER 65 per dollar)
fob value of sales becomes 7.5 crore (75 per dollar) crores
now which amount should be given in disclosure 7.5 or 6.5

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5 Replies

Ayush Chaudhary (25 Points)
Replied 27 April 2021

Disclose amount of 7.5

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 27 April 2021

I checked disclosures and it doesn’t mention anything. Are u sure it’s there in disclosures?

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 27 April 2021

You should give disclosures at 7.5 crores

Umang Agarwal (19 Points)
Replied 28 April 2021

But as per Ind as 21 sales will be recorded at 6.5 crores while you are disclosing 7.5 crore

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 28 April 2021

The exchange difference amount between the transaction date or settlement date recognised must be disclosed and not the whole 7.5 crores.

Any exchange difference recognised in Revaluation reserve taken though OCI must be disclosed and not the 7.5 crore amount

When the company is translating a group- parent & subsidiary, it must disclose the foreign currency exchange rate along with translation gain or loss and no need for the whole 7.5 crores

when a transaction occurs in January, settled in March, you must record-

Fx gain/loss on settlement date

Th reason for change of foreign currency in which the subsidiary operates between jan & March

The date of currency change

so, no need for 7.5 / 6.5 crores disclosures.