Pushparaj. A (Sr. Accountant) (92 Points)
07 November 2008Hi,
I would like to know the accounting concepts & entries of Foriegn Exchange transactions. (ie. How to adjust the forex gain/loss in the balance sheet and its basic concepts, if any)
Regards
Pushparaj. A
Juzer Sadikot
(CA - innovative solutions for Imports and Exports)
(1309 Points)
Replied 07 November 2008
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
CMA A.K.ROY
(SERVICE)
(188 Points)
Replied 08 November 2008
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
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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