I have imported raw material before 31st march, 2012 and make a payment in April'2012, there is a exchange diff. what should be accounting treatment in this case?
and if i import Fixed Asset and there is a exchange diff. whether i have to capitalised the same or should be debited to P&L Account?
17 April 2012
Assume that u importer RM at Rs. 50. If the closing rate on 31st march is Rs. 51, then account for loss of Re. 1 in 2011-12 financials. Assume on date of payment exchange rate is Rs. 49 only, then book profit of Rs. 2 in FY 2012-13. In case of fixed asset acquired before March 2012, the company has an option to either capitalise or charge off, but to disclose the same in the financials. however w.e.f April 01, 2012, there is no such option of capitalising forex losses to fixed assets.
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