Ajnas (Student) (844 Points)
15 March 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 15 March 2021
Use the spot rate for everything. When the payment is delayed, use the spot rate then. Recognise losses vs gains. This rate can be found on local stock exchanges
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 15 March 2021
Forgot you can use currency converter as well: https://www.calculatorsoup.com/calculators/financial/currency-converter.php
Mohanraj J
(1166 Points)
Replied 15 March 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 16 March 2021
YOUR QUERY- foreign currency monetary items should be reported using the closing rate. However, in certain circumstances, the closing rate may not reflect with reasonable accuracy the amount in reporting currency that is likely to be realised from, or required to disburse, a foreign currency monetary item at the balance sheet date, e.g., where there are restrictions on remittances or where the closing rate is unrealistic and it is not possible to effect an exchange of currencies at that rate at the balance sheet date. In such circumstances, the relevant monetary item should be reported in the reporting currency at the amount which is likely to be realised from, or required to disburse, such item at the balance sheet date;
The meaning is simple, at initial recognition all cash, receivables and payables monetary items are translated to domestic currency in which a company prepares its statements. Then at subsequent measurement, the same method is followed ie., the monetary items are revalued at every balance sheet date in their reporting currency again to see if the monetary items value increased or decreased in domestic currency.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 16 March 2021
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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