Dharmesh k. Dubey (Student) (188 Points)
06 November 2009Dear Sir Nd Friends ,
while valuing the Creditors at the end of the financial year at the closing rates of currency the company reports a foreign exchange loss , wat wud b the effect of this loss on the o/s balance of creditors , will it b added to their balances nd then shown in the b/s ?
DEEPAK MALHOTRA
(CA)
(32 Points)
Replied 13 November 2009
| Originally posted by :Dharmesh k. Dubey | ||
| " | Dear Sir Nd Friends , while valuing the Creditors at the end of the financial year at the closing rates of currency the company reports a foreign exchange loss , wat wud b the effect of this loss on the o/s balance of creditors , will it b added to their balances nd then shown in the b/s ? |
" |
In case of Non-integral Foreign Operations -
All resulting exchange differences should be accumulated
in a foreign currency translation reserve until the disposal
of the net investment.
In case of Integral Foreign Operations -
Exchange difference should be recognized as income or as
expenses in P&L account.
Bharat Khurana
(Student)
(153 Points)
Replied 26 December 2009
yes exchange fluctuation loss shall be debited to profit & loss a/c and the amount of creditor shall be increased.
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