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AS 11

Shouldn't we restate to 47.15 on 31 December and then take the difference of profit or loss . As the books are closed on 31st December

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Swathi Krishna

Swathi Krishna

CA Inter

7K+

18-Nov-20

45

Answers (4)

I think we need to apply prudence concept here-Not recognizing the unrealised gain by restating but rather holding. Had USD rate gone down to 46 for instance on 31/12, loss should have been immediately recognized and when profit was realised in January , appropriate adjustment should have been made to write back loss. Hope this helped


Suraj Narayanan

Suraj Narayanan

CA Final

7K+

19-Nov-20

It should be marked to market on 31st December.


Suraj Lakhotia

Suraj Lakhotia

Admin

19-Nov-20

Means


Thread Starter

Swathi Krishna

Swathi Krishna

CA Inter

7K+

20-Nov-20

Thread Starter

Swathi Krishna

Means

Gain or loss will be booked on 31st December if books are closed.


Suraj Lakhotia

Suraj Lakhotia

Admin

20-Nov-20

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