Chinnam Madhav (Article assistant) (51 Points)
15 June 2016I have some foreign payables due on balance sheet date. As per AS-11 I need to transalte these payments at closing rates.
However i have in agrrement with customers so that if any loss on foreign exchange will be borne by my customers.
So do i need to translate at balance sheet rate, even if my loss is borne by customers?
Senu Reddy
(ca final)
(291 Points)
Replied 15 June 2016
What about your agreement regarding if there is profit, and as on 31st March you never knew that in future there is profit/loss due to exchange fluctuation, so it is better to account loss/gain on balance sheet date.
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