Cost audit

This query is : Resolved

vishal (Querist)
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05 August 2012 Hi...

What is the treatment of Foreign Exchange Fluctuation Gain/Loss in Cost audit???
Is it a cost Or Non Cost??& Why??Please give me a reason.

CA. Vikash Dwivedi

CA. Vikash Dwivedi (Expert)
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06 August 2012 as per AS11 FX gain/ loss goes in to P&L Account and can not be part of cost of P&M or any other asset. The companies Act is also amended suitably.

may be you can refer Cost Accounting Standard.

vishal

vishal (Querist)
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06 August 2012 For Costing,
In case if It is related to material,is it a cost??
If no,what is the treatment??Is it included in reconciliation???

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Rahul Jain

Rahul Jain (Expert)
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19 September 2012 Yes it is included in reconcilation statement....... all costs that do not form part of normal production are shown in reconcilation......