Accounts query

As per new schedule-IV, misc exp. was written off fully and not to be carried forward...

The revised Schedule VI does not contain any specific disclosure requirement for the unamortized portion of expense items such as share issue expenses, ancillary borrowing cost and discount or premium relating to borrowings.

AS 16 Borrowing Costs alludes that ancillary borrowing cost and discount or premium relating to borrowings could be amortized over the loan period.

The share issue expenses, discount on shares, ancillary cost-discount-premium on borrowing, etc., being a special nature item are excluded from the scope of AS 26. Keeping this in view, certain companies have taken a view that it is an acceptable practice to amortize these expenses over the period of benefit, i.e., normally 3 to 5 years.

The revised Schedule VI does not deal with any accounting treatment and the same continues to be governed by the respective accounting standards/ practices. Further, the revised Schedule VI is clear that additional line items can be added on the face or in the notes.

Keeping this in view, companies can disclose the unamortized portion of such expenses as “Unamortized expenses”, under the head “other current/ non-current assets”, depending on whether the amount will be amortized in the next 12 months or thereafter.

What will be accounting treatment in case of :-

-Gift recieved

dear sir,

we have imported certain finished products from a country and sending /exporting the same to other country straight away. all invoices are made only india and bill of lading also.

we get all money transactions in usd only. we pay agency commission also. we have two bank accounts one in inr and other in usd.

what will be accounting entries> and treatment of foreign exchange reserve fluctuation.

all bank charges in usd aswell in inr.

please clarify

thanks and regards.

r.v. moorthy

agree with Ketan.