Transaction in foreign currency

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mahavir (Querist)
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21 June 2008 one of client is exporting and whatever outstanding as on 31st march is required to be converted at the dollar rate as on 31st march.What AS says- pls clarify

Jitender

Jitender (Expert)
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21 June 2008 as -11 will apply.
& it is to be re-stated.

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
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21 June 2008 AS-11

Convert all

Opening Current Assets & Current liabilities at opening rate

Closing Current Assets & Current Liabiities at Closing rate

Transations during the year (Expenses/Incomes) at average rage

Transactions between HO & Branch should be converted on the actual amount realised or spent

Long term liabilities & Fixed Assets should be converted at the rate prevailed on the date of contracting that liability or acquisition of asset

Difference in converted Trial balance should be taken to P & L account as a Gain or Loss in Exchange

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Tarun Gupta

Tarun Gupta (Expert)
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23 June 2008 Yes it should be reinstat at closing rate

Chintan Gajjar

Chintan Gajjar (Expert)
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23 June 2008 yes it is Correct. As per AS-11 (A/c for Foreing Ex. Rates Fluctuation)Foreign Exchane Payable / receivable should be marked to market on 31/03/2008.