Whether Foreign Currency reinstatement is applicable for Loan received in Dollars & then converted to INR,,,,,,,,,,,
RAMANJU
(here to updating the knowledge)
(485 Points)
Replied 02 July 2009
Anshika
( CA -Industry- Sr.Accounts Officier)
(141 Points)
Replied 21 December 2009
yes. loan amount should be reinsated to know the true value if debt , and gain or loss on conversion should be taken in P/L a/c
First!!!!
(student)
(162 Points)
Replied 26 December 2009
Yes the loan should be reinstated as Per AS11 and the effetcs must be dr or credited in the P&L A/C. . .It is better to reinstate the loan on a monthly basis than on a yearly basis.So that the currency fluctuation doesnot show a huge amount of difference
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)