atul (DGM) (62 Points)
27 April 2011What is the USD and Euro rate as on 31.03.11 for the purpose of conversion of Accounts payable/ receivable/ advances as on balance sheet date.
Pl. clarify whether two different rate should be taken for accounts payable and accounts receivable on the pertext that bank give two way rate for buying and selling.
Ankit CA and CS
(Manager - Accounts)
(204 Points)
Replied 27 April 2011
Hii Atul,
Closing rates are confimred by banks and different banks have different closing rates with minor differences and while converting if both bid and ask rate are there then we we use bid rate to convert liabilities (to be conservative) and ask rate to convert Assets (again to be conservative). This is the accurate way of translating.
But many compaies use just one rate for translating Assets and liabilities that is also correct.
Regards,
Ankit
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
