20 August 2010
Fixed Assets put to use in one accounting year at a foreign exchange rate but the payment for the same is made in the next accounting year at a different foriegn exhange rate as the foreign exchange rates changed - please suggest the accounting treatement for foreign exchange gain or loss as per accounting standard
21 August 2010
gain/los on foreign exchange fluctuations should be charged to the profit and loss account.
liability should be restated and resulting the gain/loss should be expensed to the profit and loss account that year, and difference between balance sheet date and the date of payment should be charged to the profit and loss in the year in which the payment is made.
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