vivek (student) (35 Points)
19 October 2011Hello friend,
i have a doubt regarding branch accounts of ipcc....
can anyone help me how to find out from question whether a foreign branch is a integral or non integral...
and please help me that at which rate we have to record the assets , expenses , liabilities & Incomes...
Regards......
Vivek.
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 19 October 2011
In Foreign Branch
The Rate are as Under....
1. All Opening Balance in trial Balance of Branch - Rate Prevailing on the first day of year
2. For all recurring items takes place during evenly throught the year - Convert as at average Rate (i.e. Opening Rate + Closing Rate / 2)
3. For Current assets and Current Liability - Closing rate - Last day of the year
4. Fixed Assets and Long Term Liabilities - Rate Prevailing on day on which assets have been purchase,
On Liability have been Incurred
5. Depreciation should be computed based on the rate prevailing on the day on which fixed asset purchased.
6. Head Office a/c - take branch a/c baalance appear in Head Office's own trial balance as it is......
All the Best for Exam..........
CAclubindia
