01 August 2008
hi evvery body, please answer the following with reasons
a company imported machinery from outside india, and the payment has been made by the banker of the company on producing the documents and there is no current liability regarding the transaction, but at the end of the year there are some outstanding LCs(in foreign currency) which were shown in contingent liability.
According to AS 11 we should not reinstate the asset for currency fluctuations, but asper the companies act wht are the entries to be passed if to be reinstated the asset should be reinstated
what is the course of action in this case please advise with reasons.
CAclubindia
