Jyothis (Article) (1127 Points)
08 September 2015How to recognise/Account foriegn exchange rate fluctuations on sale of services to foriegn clients.
1)Do we need to consider only exchange rate fluctuation for sales effected during end of account period or all foriegn sale of services.
2)what are specific disclosores required.
3) Company have no other foriegn currency operations other than Sale.ie no loans/purchase/Inventory/ in foriegn currency.
JOEY TRIBIONI
(Article)
(200 Points)
Replied 26 December 2015
We need to consider exchange rate fluctuation for sales effected for all foriegn sale of services. According to AS 11 we have to take all the transactions.. I have understood your doubt. If the amount from the client is unpaid then we need to restate debtor balance and should recognize exchage gain or loss in P&L on the Balance Sheet date at the rate on the same date ( BS date)
Jyothis
(Article)
(1127 Points)
Replied 26 December 2015
Is there any disallowance for Forex Loss under Income Tax Act
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