Foreign Exchange Loss

This query is : Resolved 

06 November 2009 Dear Sir Nd Friends ,

while valuing the Creditors at the end of the financial year at the closing rates of currency the company reports a foreign exchange loss , wat wud b the effect of this loss on the o/s balance of creditors , will it b added to their balances nd then shown in the b/s ?

thnx in advance .

06 November 2009 Pl see companies (Accounting Standards) Amendment Rules,2009 in the following link.
https://www.caclubindia.com/notice_circulars/notice_list_detail.asp?notice_id=1918

06 November 2009

Suppose creditor is shown on purchase date as
Purchases a/c. dr (1000*46).....46000
to Sundry Crs 46000

The Following 2 entries are passed at the end of the yr when Exchange rate is 48.

Prov for Loss on Foreign Ex A/c..Dr 2000
to Sundry Cr 2000

PL Dr.................... 2000
to Prov for Loss on FE 2000


06 November 2009 Respected Warrier Ji,

what happens if the asset or liability is not a long term foreign currency monetary item. as creditors is a current liability and in most of the cases the age og a creditor is far less than 12 months.

Please express your valuable opinion.

06 November 2009 Sanjay Sir
In that case Mr. Anand Sarda's view can be adopted.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries