Ind AS 21 - Accounting of Foreign Exchange transactions

[Guest]

What is the exchange rate to be adopted while booking in the Books of Account in case of Imports when advance has been paid.

Eg - Advance paid on 01/03/2017 - 100$ ($ = 69)

date of Bill of entry 10/03/2017 - 150 $ ($ = 70).

At which exchange rate the entry shall be posted in the Books of Account?

AI Summary

Use Exchange Rate on Advance Payment Date for Import Transactions, Not Bill of Entry Date A query was raised regarding the appropriate exchange rate for accounting foreign exchange transactions, specifically for imports when an advance payment is made. An example was provided where an advance of $100 was paid on March 1, 2017, with an exchange rate of $1 = 69 INR, and the bill of entry was on March 10, 2017, with a rate of $1 = 70 INR. The response suggested using the exchange rate on the transaction date when the advance was paid, as reflected in the bank statement, rather than the bill of entry date.