Dear Readers
This is a question about accounting as per indian Accounting Standard for the treatment of Forex Loss
mostly 99 percent in the structure derivatives contract with the Banks ( speculative out of proportion of company actual exposure in the export/import upto such a position taken magnitute , actual exposure is only 1-2 per cent ,done in last three three years in a limite non listed company
because the auditors of the company & management has put it in as swap cost ( swap cost is actually a case of roll over on a derivative contract outstanding but when the contract has already been squared off , will it be a swap cost) and it is agreed to put in as cost of production in trading account of the company & what will be its Income Tax aspects as it a substantial loss being booked in P & L a/c in a year
please advise your views
Mohan Gupta