12 February 2009
What is average rate under AS 11? In case of huge fluctuations in exchange rates during a particular month or months can we adopt daily rates for average rate ? Can a company adopt daily rates for non-voluminous transactions and average rate for voluminous transactions during a period where there was huge fluctuation in exchange rates (it was not realised while booking the entry, it was realised while closing the books)?
13 February 2009
Average rate is the average of excange rate of weekly, monthly, quaterly, etc. Using daily rates is fine. Also it helps in increasing accuracy in amount for whcih transactions are caried out
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