09 August 2010
A party in India purchased goods from China.The invoice date in 27th Dec and the same was accounted in the month of March 2010.A what exchange rate it should be accounted?At what rate payment has to be made?
12 August 2010
Sukanya maam,The good reached indian port in March 2010.so, logically v should account @ the rate in which it reaches indian port right?
13 August 2010
It is industry wide practice to account for the transaction as per the invoice date.
Relevant clause from AS 11 is quoted. 9. A foreign currency transaction should be recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
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