19 May 2012
Sir....Please guide me that i have closing balance of one foreign party from whom i have purchase Plant & Machinery. so it is creditor for fixed assets. In this case, will i have to give effect of closing rate prevail on 31-3-2012 in this outstanding balance, so it will be nill and there may be gain/loss on this effect.
19 May 2012
If there is outstanding creditor payable in foreign currency, then the outstanding foreign currency liability should be restetd at closing balance sheet rate as per AS 11 definition and measurement of monetary liabilities.
CAclubindia
