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Answer Posted / bindu
according to my knowledge foreign currency revaluation
needed at the time of doing business with a foregin vendor
,foreign customer.
by the time when we take service from vendor for 10000 the
dollar rate wa 50 rs (suppose vendor is us person )so
according to this rate we have to give 500000rs according to
our local currency (inr)
but dollar rate always fluctuate .it may riase it may
down.in that scenario by the time of repayment suppose it is
45rs /1dollar .at that time we have to pay only 450000rs in
our local currency(inr)in this scenario we get 50000 profit .
suppose if dollar rate was 60 at the repayment time.then we
have to pay 600000.so we get 100000 loss.
in foreign currency revaluation we can know the profit or
lose we gain
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