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Exchange effect while valuation of Inventory

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Querist : Anonymous

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Querist : Anonymous (Querist)
31 January 2011 Dear Sir/Madam,

I have made the payment to vendor of 100 dollars @ Rs. 44 per dollar.

When my GRN was made the rate was 46 per dollar.

When the Bill was booked it was 47 per Dollar.

The question is:- How will I give effect of Rs. 3 per dollar (i.e. 47-44).

Will I charge to P&L, or will I have to load the cost to material, or some part effect is to be given.

Kindly guide.

Thanks in Advance
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
01 February 2011 AS per AS 11 Inventory is a non-monetary items and Exchange varation is not applicable.

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