As -11 foreign exchange rate (forward contract)

Accountancy

Is my answer correct for the qn? What is the treatment for the rate of March 2018. 63 Exchange rate shall be recognised to the pand l account in the reporting period in which exchange rate changes- what is meant this ( in forward contrat) Please kindly look into this

Subash Chandrabose

CA Final

★ 32K+

19-Apr-22 11:32

593

Answers (2)

Best Answer

If it is a forward contract for non-speculation purpose - You will amortise premium and discount. If it is a forward contract for speculative/trading purpose - you recognise gain/loss based on year end rate. In this question year end amount is not relevant.

CA Suraj Lakhotia

Admin

20-Apr-22 17:21

Thank you sir

Thread Starter

Subash Chandrabose

CA Final

★ 32K+

20-Apr-22 18:23