Forex profit/loss accounting

Krishan sir... Para 46 has been withdrawn from the date you specified.. but i mentioned para 46A.. which implemented from that date onwards.. kindly refer AS-11 for your reference.. you will get the same wordings...

and thanks to shivani mam... and if he didn't take the land or any other fixed asset on loan, then why will it be shown in the books and why one needs to make effect of foregin exchange fluctuation??? for e.g. i purhcased a land of Rs. 1crore, without loan, that is by paying cash or cheque of the same amount.. then, it's nil... where's the effect of foreign exhchange difference in that case?? the difference will occur only when there is monetary and non-monetary difference and it is asset or liability for us.. not in normal sale/purchase cases, where we didn't have the liability... and in that case, the asset you purchased (e.g. land) would be recorded at the historcial value or simply say, Rs. 1 crore, which you paid for it..

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

yes

feeling dumb

lol

regards

shivani

Thanks Lovely for your response ..

But still i have some query on it and will you be help me out for this.

1. I think 46 A is for extending the date for amortisation of the balance amount lying FCMIDT, Also as per current Shedule VI format do we have option for disclosing this reserve amount .

2. Also i think this is optional for Corporate for adopting FCMIDT , we can now directly charge against profit and increase the creditor amount in case of loss.

it will be great if you could help me for above query ,

Dear krishan sir.... yes, the para 46A is optional... but, if you apply this para, then the treatment would be as i specified above..  and it's not just the extension, it can be applied by new companies also... you have both the options available....