As 11 query_foreign currency advance restatement

This query is : Resolved

CA CS PRASHANT (Querist)
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10 July 2012 I have paid in 2012 advances to my vendor last year for supplying of materials.But the material has not yet been supplied by vendor till the end of the year 2012.

Can i restate the amount paid in closing foreign currency rate for closing my books of accounts for the year ended March 2012.

Dear Experts i need the help urgently.

Sanjay Chauhan (IFRS)

Sanjay Chauhan (IFRS) (Expert)
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11 July 2012 Advance against delivery of Goods and no refund, is not a Monetary liability under AS 11.

Thus it should not be Marked to market.

However, there is an EAC on the topic where they have concluded that it should be Mark to Market.

You may note that EAC is not binding on the auditors and hence you may choose not to restate the advance at balance sheet date.

Above is true only if there is no possibility of refund.

However auditors may take a different stand.