what is the treatment for currency fluctuations in the books of accounts?
2 Replies
jigar
(Finance Analyst)
(50 Points)
Replied 04 February 2010
Hi,
if you are considering restatement of Assets & Liabilities you will have to restate the same at the closing rates and pass the difference to Profit & Loss account +ve or -ve. OR
are you talking about Hedging currency futures.
CA munjal
(articled clerk)
(100 Points)
Replied 06 February 2010
I think your question is not specific. The treatment of foreign exchange loss relating to non monetary, denominated in foreign currency, depends whether the asset is recorded at historical cost or fair value.
If the asset is recorded at historical cost then the foreign exchange should be booked as per the rate applicable on the date on which historical cost was determined.
Recent Topics
- Clarity regarding Sec 16(4)
- GST ON HOTEL ROOMS details
- Relief for Delayed Filing of Tax Forms
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
Related Threads
CAclubindia
