JOSEPH DAVID (GM FINANCE) (286 Points)
04 January 2012Dear 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
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 09 January 2012
Yes,according to the AS the difference between the transaction day exchange value and the accounting day exchange value has to recognized on the date of closing.
kkm
CAclubindia
