ACCOUNTING FOR DIFFERENCE IN FOREIGN EXCHANGE RATES, Accounting - Auditing

[S.C. WADHWA]

A Company had given advance of USD 5000 towards purchase of machinery from China.

Advance is given dt. 12/02/14.

Remaining payment of USD 15000 is made on 15/04/14 and machinery is imported dt. 14/05/14.

Please advice how foreign exchange difference will be dealt with as on 31/03/14.

Posts / Replies

[Pradeep Khatri]

Dear S.C. Wadhwa,

Please check AS - 11 in this regard.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)