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IFRS FX contract treatment

28 March 2012 1,079 views No Comment

I would like to receive inputs on this query, thanks in advance.
A company based in India wants to buy goods from company based in Europe. Following scenario can be assumed
01.03.2012 : A deal was done = The company in India would buy100 EUR (purchase) worth of goods, by credit term 90 days after invoice date (estimated due 31.08.2012)
The company in India, book FX forward contract =1 EUR @ 42.00 INR/EUR by settlement date 31.08.2012
31.05.2012 : The suppliers finishes the production after taking almost 3 months and issue invoice for …

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