16 December 2019
Import Purchases - At what exchange rate should we book import purchase in books as per accounting standards and from where we will get this rate.
Exports - at what exchange rate should we book exports sales in books as per accounting standards and where we will get this rate
16 December 2019
Both import and export to be accounted at the rate mentioned in Bill of entry.
If advance is paid for import and advance is received for export , then the difference between rate at which advance paid/ received and accounted as per BOE to be profit / loss on foreign exchange rate fluctuation
If import and export is made for credit and if it is unpaid / received , the difference between rate as per accounting and buying / selling exchange rate as on 31st March to be accounted as profit / loss on exchange rate fluctuations .
17 December 2019
Dear Sir But As per Accounting Standards Which Rate we take for Booking. Because Accounting standard has not clarify that From Where this Rate we have to take. And If We take Bill of Entry Rate than why these rate we take any officially Declaration or Any Reason For taking.
17 December 2019
The bill of entry is the document by which the export and import is taken place and the date of ill entry is import/ export date. That is why the rate mentioned in Bill of entry is to be accounted both for import and export. I can tell only the query regarding accounting and you can cross check with experts.. But I have nothing to say for the question asked in your last sentence.
CAclubindia
