19 October 2007
HOW SHOULD THE FOREIGN EXCHANGE DIFFERENCE BE DISCLOSED IN CASE OF A PVT LTD COMPANY'S BALANCE SHEET?? CAN IT BE ROUTED THROUGH P&L ACCOUNT OR HAS TO BE REFLECTED IN THE BALANCE SHEET ONLY? THE COMPANY IS AN ASSOCIATE OF THE COMPANY ABROAD????
19 October 2007
As regards foreign exchange differences, the point to be seen is whether that is Profit and Loss account item or Balance Sheet item. In the case of Profit and Loss item, then it can be shown in P& L , as per the Accounting Standard 11.
In the case of a Balance Sheet item, then it should be shown in the Balance Sheet of the Pvt limited company.
01 November 2007
AS 11 treatment will prevail. P&L items will be in P&L and Balance Sheet items will be treated in Balance Sheet. Thus plase send more details to clarify the same. AS 11 more details can be forwarded to you.
CAclubindia
