02 June 2016
how to treat the forex diff. in all the relevant account relating to raw material purchase on the date of transaction and on 31.03.2016 say: good purchased $5000 on 1.1.2016 ($1= 42) taken loan from bank to meet the transcation, bank paid $5000 on 10.1.2016($1 =46/40) we repaid the loan 20.01.2016 ($1= 50). how to treat in financial statements?
03 June 2016
Dear Ma'am, AS PER MY VIEW - - - Loss on account of restatement of liability at the year end Exchange rate is not to be treated as notional loss. it is to be treated as revenue loss and to be deductible in computing business income in Bonafide cases.
CAclubindia
