Accounting Concepts for Forex Transactions

Dear Pushparaj,

You need to refer AS 11 for understanding accounting of change in Foreign Exchange gain/loss and also rules/methods of translation into reporting currency as on reporting date.

Regards

If gain/loss within the previous year :

If the amt paid relates to P/L then gain/loss to be credited/debited to the exp a/c head.

If the amt paid relates to B/S say purchase of F/assets then gain/loss to be credited/debited to the particular asset a/c

If gain/loss occur after B/s date :

Either B/S OR P/L ITEMS-Then gain /loss to be shown as inome/expenditure.

IF the asset is in WIP satge : gain/loss to be credited/debited to Asset-WIP

Thanks Mr. Juzer and Mr. Roy.