query regarding AS-11

AS 699 views 3 replies

A small favour regarding As-11, the cash generated through sales has been deposited into a foreign a/c where the cash was left in the a/c for a period of one financial year, the opening balance at the start of the year has been increased due to the fluctuation gain during the course of time, can this be included in the sales a/c or shown separately as fluctuation gain in the p&L a/c

Replies (3)

It should be shown seperately in P & L under Forex Fluctuation because sales are to be booked on the date of sales at the rate prevailing on the date of sale.

So if any excess/defecit is to be adjusted through Forex Fluctuation

Although the Source is  Sale, the nature of the Cash is Different when it is deposited. Hence you have to recognise it as an indirect Income in P & L

agreed


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register