23 December 2009
hi friends, whether do we need to account the gain, arising because of reporting the monetary items at rate on b/s date(as per AS 11). If yes, is it not mean accounting unrealised Income. against the principle of :prudence".
04 January 2010
The gain needs to be accounted, as the principle behind that is stating the value that is most likely to be realised. In case that is not the case, the amount that is most likely to be realised should be reported. You may read para 11.a of AS 11 for better clarity.
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