Clarification on Para 46A of Notification Number G.S.R. 914(E) dated 29.12.2011 on Accounting Standard 11 relating to “The effects of changes in Foreign Exchange Rates”. - Companies Law - 25/2012

Circular No. 25/2012, F. No. 17/133/2008-CL-V Government of India Ministry of Corporate Affairs 5 th Floor, A Wing, Shastri Bhavan Dr. R.P. Road, New Delhi-110001 Dated 09.08.2012 All the Regional Directors, All the Registrar of Companies/Official Liquidators All Stakeholders Subject:- Clarification on Para 46A of Notification Number G.S.R. 914(E) dated 29.12.2011 on Accounting Standard 11 relating to The effects of changes in Foreign Exchange Rates . The Ministry has received several representations from industry associations that para 6 of Accounting Standard-11 and para 4(e) of AS-16 are posing problems in proper implementation of para 46A of notification 914(E) dated 29-12-2011 . In order to resolve the problems faced by industry, it is hereby clarified that para 6 of Accounting Standard-11 and para 4(e) of the Accounting Standard-16 shall not apply to a company which is applying clause 46A of Accounting Standard-11. Yours Faithfully (J.N. Tikku) Joint Director