Hello Esteemed Experts.
I need some clarity on which IndAS and IFRS (if applicable, GAAP ) apply on the following event. Also please correct me if my accounting treatment is wrong.
Following are the sequence of events.
Period of Jan 2020 and Feb 2020 are both open, which means we are still entering entries in both periods.Books have not closed for Jan 2020.
1) 01-JAN-20 -Incurred a liability of 100 INR, say which converts to 90 USD
2)01-JAN-20-Paid the above liability at same forex rate, i.e. 90 USD
3)01-FEB-20-Forex rate changed to 0.08 USD per INR, effective retrospectively from 31-JAN-20
4) 02-FEB-20-Voided the above payment, i.e. reversed the payment accounting entry (Sl.No. 2) at 90 USD (and not 80 USD, since we are cancelling what we paid)
5)02-FEB-20-Reissued payment. Paid 80$ at current forex rate. Earned realized gain of 10$
6) 05-FEB-20-Revalued open liabilities for the period ending on 31-JAN-20 at current prevailing exchange rate,
Since rate on 31st Jan is 0.8 USD, the liability as on 31st Jan is 80 USD, and I have an unrealized gain on 10 USD on 31-JAN-20. This materializes into realized gain at a later date when actual payment is made. (Please confirm if this is correct)
Any suggestions/advise is welcome.
CAclubindia
