Accounting Treatment for EEFC Accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2010 Hello Sir,
I just wnats to know the accounting treatment of the EEFC account maintained with the bank dealing in foreign curreny at the year year end in the books of the company.If we translate the amount at the closing rate or as the case may be at the avg rate prevailing on the year end, then there will be diffence in the balance in INR as per bank book and bank statement be cause the bank statement wiill be in INR.

Please specify the proper accounting treatment for the said account. Is it as good as cash in hand in foreign currency??

Please guide.