Foreign exchange gain/loss

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CA Arihant Kothari (Querist)
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07 April 2011 if i import goods by making advance payment then whether i should account for foreign exchange gain/loss or not?

CA Ganpat Singh Rajpurohit

CA Ganpat Singh Rajpurohit (Expert)
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07 April 2011 dear author

you have to calculate exchange gain/loss at the time of bill booked(goods received) and the same gain/loss transfered to P&L a/c.
if goods not received till end of b/s date, you have to revaluate advance payment as on that date as per exchange rate of that date and the same gain/loss transfer to p/l a/c.