jean (article assistant) (113 Points)
11 June 2012
AS 11 does not specify particularly which exchange rate should be used while calculating Foreign exchange gain/loss.
which rate should be used while booking of transaction?(ie invoice date or bill of lading date or the rate of the day on which transaction is booked)
is it appropriate to use rate specified in BOOK of Entry. does AS allow to use this rate.
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 11 June 2012
dear jean
the rate on the date on which actual purchase was made.
cheers
ganesh agarwala
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 11 June 2012
As per my knowledge First of all you just check when risk and reward associated with goods is transfered to us and when the liability of the party arises? the day when liability arises.... it should be the transaction date.
say for example goods is dispatched by A from japan to Mr. B in india and invoice for the same is raised dated 10th June 2012 however the the bill of ladding date is 15th june 2012. then you have to see whether risk of the goods is transfered to Mr. B on 10th itself or on 15th ?
if the risk transfered as and when invoice generated then rate prevailing of 10th should be taken and in case two where risk transfered on 15th then rate prevailing on 15th will be taken
Hope it is cleared to you.
Regards
Madhusudan Kabra
jean
(article assistant)
(113 Points)
Replied 11 June 2012
| Originally posted by : Madhusudan Kabra | ||
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As per my knowledge First of all you just check when risk and reward associated with goods is transfered to us and when the liability of the party arises? the day when liability arises.... it should be the transaction date. say for example goods is dispatched by A from japan to Mr. B in india and invoice for the same is raised dated 10th June 2012 however the the bill of ladding date is 15th june 2012. then you have to see whether risk of the goods is transfered to Mr. B on 10th itself or on 15th ? if the risk transfered as and when invoice generated then rate prevailing of 10th should be taken and in case two where risk transfered on 15th then rate prevailing on 15th will be taken Hope it is cleared to you. Regards Madhusudan Kabra |
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thanks madhusudan,
how can i verify on which date the risk and ownership has been transferred from seller to buyer.
is there any standard rule?
regards
jean
Joey Tribbiani
(fdg)
(2010 Points)
Replied 11 June 2012
| Originally posted by : jean | ||
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Originally posted by : Madhusudan Kabra As per my knowledge First of all you just check when risk and reward associated with goods is transfered to us and when the liability of the party arises? the day when liability arises.... it should be the transaction date. say for example goods is dispatched by A from japan to Mr. B in india and invoice for the same is raised dated 10th June 2012 however the the bill of ladding date is 15th june 2012. then you have to see whether risk of the goods is transfered to Mr. B on 10th itself or on 15th ? if the risk transfered as and when invoice generated then rate prevailing of 10th should be taken and in case two where risk transfered on 15th then rate prevailing on 15th will be taken Hope it is cleared to you. Regards Madhusudan Kabra thanks madhusudan, how can i verify on which date the risk and ownership has been transferred from seller to buyer. is there any standard rule? regards jean |
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The time at which contract for sale is executed and all the formalities related to sale are complete
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 11 June 2012
1. You can inqire with the managment.
2. Insurance documents can be good good proof of establishing the fact.
3. Contact between the parties i.e. when the responsibility of seller come to an end.
Regards
Madhusudan Kabra
Gunjan Tulsyan
(Article)
(222 Points)
Replied 11 June 2012
There is a general practise in the industry to follow the invoice date but it is practically said tht the bill of lading should be taken for FOREX Calculation since it is the bill of lading date on which the risk of goods and ownership gets transferred but this may wary in case u have a different contract for transfer of risk n ownership with ur party...but the practise of following the date to be taken varies in the industry...!!!\
sachin
(ARTICLES)
(434 Points)
Replied 12 June 2012
You can also use import export exchange rate given in https://cbec.gov.in/ website
pawan
(article assistant)
(28 Points)
Replied 12 June 2012
| Originally posted by : Madhusudan Kabra | ||
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I agree with you Madhusudan Kabra. Thanks
With Regards
Pawan |
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