As per AS - 11
"A foreign currency transaction should be recorded, on initial recognition in the reporting currency, by applying the rate of foreign currency at the date of the transaction".
Now what does that transaction date means? Is that the date of payment or date of filing bill of entry(date of receipt of goods)?
One of our clients have imported a capital asset. Details as under:
Date of payment (100% advance)- 20th Sep 11, Rs/$ - 48
Date of Bill of entry - 10th October 11, Rs/$ - 50
It is taking the bill of entry date i.e 50/- while recording in the books. I feel that it is not appropriate.
Can u please share your views!
CAclubindia
