Ecb loan

This query is : Resolved

Gorav Kumar Goyal (Querist)
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08 January 2013 HELLO SIR,

We have taken a loan in foreign currency and entered a currency swap agreement(interest & principal fixed in INR). How the accounting of this will be.

For eg.
Our foreign currency cost is 10000 USD * 50 = 500000 and INR cost is 2000000 then how should we treat extra 1500000 cost. whether it will be treated currency swap cost separately or it will treated interest cost as our interest cost is fixed.

Is there different accounting standard for accounting of this type of transactions.

Kindly clarify.

Thanks

Gorav Goyal

Gorav Kumar Goyal

Gorav Kumar Goyal (Querist)
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15 March 2013 kindly reply