03-18-2009, 04:18 PM
Dear All,
I am working in Cement industry in one of the Gulf countries and currently we are facing the following problems with respect to our receivables.
From all of our credit customers we receive L/Cs and L/Gs.
⢠What should be the treatment of L/Cs and L/Gs in the books of account?
⢠In case we receive âPost dated checkâ from the customers, can we reduce our receivables at this point of time? If yes, how can it be executed?
⢠In case of L/C, when the Bank issues âAcceptance Adviceâ (an irrevocable commitment) that this will be the maturity date of our L/C, but sometimes it takes one or two days for the money to be actually credited in the bank, can we reduce our receivables as at the maturity date of the L/C and not waiting for the money to be actually credited in bank (on the basis of bank acceptance advice).
Kindly advise in light of âInternational Accounting standardsâ (with reference).
Muhammad Ihsan
I am working in Cement industry in one of the Gulf countries and currently we are facing the following problems with respect to our receivables.
From all of our credit customers we receive L/Cs and L/Gs.
⢠What should be the treatment of L/Cs and L/Gs in the books of account?
⢠In case we receive âPost dated checkâ from the customers, can we reduce our receivables at this point of time? If yes, how can it be executed?
⢠In case of L/C, when the Bank issues âAcceptance Adviceâ (an irrevocable commitment) that this will be the maturity date of our L/C, but sometimes it takes one or two days for the money to be actually credited in the bank, can we reduce our receivables as at the maturity date of the L/C and not waiting for the money to be actually credited in bank (on the basis of bank acceptance advice).
Kindly advise in light of âInternational Accounting standardsâ (with reference).
Muhammad Ihsan
