PORSELVI (Accountant) (78 Points)
25 April 2012CASE:
I have done the import for $13843.20. I booked the purchase with the bill of entry rate(Rs.53.25/$). But i made the payment for $14659, based on Proforma Invoice at Rs.52.705.
My Query is, for how much exchange fluctuation has to be booked and on what amount(whether on 13843.20 or 14659)
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 25 April 2012
as far as i am concerned as 11 deal with foreign exchange rates fluctuations. you have actually purchased goods for$14659. so u need to book exchange differnce on that amount.
my answer is excused if para 46 of nacas was applied by you on such goods earlier
cheers
ganesh
CA Sachin Rastogi
(Audit/IFRS Manager)
(338 Points)
Replied 25 April 2012
I dont think purchase cost of goods should be adjusted for the exchange fluctuation. You should book the goods at a rate prevailing on the date of transfer of risks and rewards to the buyer. All other exchange differences on settlement of the creditors should be treated as exchange gains or losses.
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