banner_ad

Exchange Fluctuation and AS 7

This query is : Resolved 
Profile Image

Profile Image

(Querist)
25 May 2010 Dear Sir,

Can you please explain whether exchange fluctuation will be included or not in contract cost while recognizing profit on contract?


Regards:
Prafull Kumar
CA Final
Profile Image

CA Kishore Tallam

Profile Image

CA Kishore Tallam (Expert)
26 May 2010 No. As per AS 7, Contract costs should comprise: (a) costs that relate directly to the specific contract (b) costs that are attributable to contract activity in general and can be allocated to the contract and (c) such other costs as are specifically chargeable to the customer under the terms of the contract.
But foreign exchange fluctuation cannot be attributed to any of the above categories and hence it cannot be considered as contract cost and it should be charged off to revenue.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details