Fe- effect under as11 against

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2012 Hi all,

I have query about Foriegn Exchange effect under AS11
what is the effect under AS11, when we make advance payment to foreign vendor aginst import of material and balance upon material received.

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 and convince auditors.

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2012 Thank you sir

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