What disclosure under as 11 are required to be made by the company regarding change in foreign currency? Also, AS 11 demands the business entity to disclose the reasons for changing its reporting currency. AS
What disclosure under as 11 are required to be made by the company regarding change in foreign currency?
Also, AS 11 demands the business entity to disclose the reasons for changing its reporting currency. AS 11 does not include restatement of financial statements from reporting currency into any other currency for the ease of users who are familiar with such a currency.
What are monetary and non-monetary items under as 11?
Cash, receivables, and payables are examples of monetary items. Fixed assets, inventories, and investments in equity shares are examples of non-monetary items. The carrying amount of an item is determined in accordance with the relevant Accounting Standards.
Which rule is applicable on foreign exchange fluctuation account?
Hence, any loss arising out of foreign currency fluctuation is allowed to be deducted from computation of total income. The Companies Act 2013 mandates the financial statements of companies to be compliant with applicable Accounting Standards (including AS – 11).
What is the applicability of IAS 21?
IAS 21 prescribes how an entity should: account for foreign currency transactions; translate financial statements of a foreign operation into the entity’s functional currency; and. translate the entity’s financial statements into a presentation currency, if different from the entity’s functional currency.
Which is not a monetary item?
Common examples of non-monetary assets include goodwill, copyrights, inventory, and plant, property and equipment (PP&E). No established market exists for non-financial assets, and asset owners must find potential buyers who are interested in acquiring the assets.
How is exchange difference treated?
Accounting Treatment of Exchange Difference Approach # 1. Single Transaction Approach: Single transaction approach is based on the premise that any transaction and its settlement is a single event. So if any exchange difference is there that may be charged to cost of goods purchased or to an export sale.
Is not fictitious asset?
These assets include a debit balance of profit and loss A/c and the expenditure not yet written off such as advertising expenses etc. Among the given options Discount on issues of shares and debentures is not the example of fictitious assets.
What does as 11 ( revised 2003 ) deal with?
AS 11 (revised 2003) deals, inter alia, with forward exchange contracts. Paragraphs 36 and 37 of AS 11 (revised 2003) deal with accounting for a forward exchange contract or any other financial instrument that is in substance a forward exchange contract, which is not intended for trading or speculation purposes, i.e., it is for hedging purposes.
When was the revised accounting standard ( as ) 11 published?
The revised Accounting Standard (AS) 11, The Effects of Changes in Foreign Exchange Rates, was published in the March 2003 issue of the Institute’s Journal, ‘The Chartered Accountant’, (pp. 916 to 922).
When did as 11 come into effect in India?
AS 11 (revised 2003) has come into effect in respect of accounting periods commencing on or after 1-4-2004 and is mandatory in nature from that date. 2. AS 11 (revised 2003) deals, inter alia, with forward exchange contracts.
Is the pre-revised as 7 issued 1983 still applicable?
Accordingly, the pre-revised AS 7 (issued 1983) is not applicable in respect of such contracts. 2 AS 8 is withdrawn from the date AS 26, Intangible Assets, becoming mandatory for the concerned enterprises.