Forward cover for sales

JOSEPH DAVID (GM FINANCE) (286 Points)

04 January 2012  

Dear All

We have a USD forward cover for future sales to be delivered in Feb,2012-Rs-49 per USD-There is no firm asset/liability AS11 is not applicable-Only AS30 is applicable

The rate on 31.12.2011 is Rs.53 per USD-

On 31st Dec closing is it necessary to revalue the forward cover and show Rs.4 per usd as loss in accounts-

Kindly reply

Joseph David