TMI BlogComparison Chart of ICDS-IV, AS-11 & IndAS-21X X X X Extracts X X X X X X X X Extracts X X X X ..... garded as an adjustment to interest costs. There is exception for exchange differences arising from foreign currency borrowings to the extent considered as an adjustment to interest costs. Similar to Indian GAAP Functional and presentation Currency Foreign currency is a currency other than the reporting currency. Reporting currency means Indian currency except for foreign operations where it shall mean currency of the country where the operations are carried out. Foreign currency is a currency other than the reporting currency which is the currency in which financial statements are presented. There is no concept of functional curr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the year shall be recognised as income or as expense in that year. Recognition of exchange difference shall be subject to provisions of section 43A of the Act or Rule 115 of the Rules, as the case may be. Same as ICDS. Exchange differences arising on translation or settlement of foreign currency monetary items are recognised in profit or loss in the period in which they arise (subject to below). There is an exception to the above that there is a limited period irrevocable option for corporate entities to capitalise exchange differences on long-term foreign currency monetary items incurred for acquisition of depreciable capital assets and to amortise exchange differences on oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There is no bifurcation like Integral or non-integral foreign operation. Accordingly, the assets and liabilities of foreign operations would need to be classified into monetary and non-monetary and the recognition of foreign exchange gain/loss for income computation purpose will be as per para 5 of this ICDS subject to para 6 of this ICDS. Monetary assets are translated at closing rate and the exchange differences are recognised as income or expense. Non-monetary shall be converted into reporting currency by using the exchange rate at the date of the transaction. Above provisions are subject to section 43A of the Act and rule 115 of the Rules. Integral Foreign Operations. Translat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of the balance sheet; income and expenses at actual/average rates for the period; exchange differences are recognised in other comprehensive income and accumulated in a separate component of equity. These are reclassified from equity to profit or loss (as a reclassification adjustment) when the gain or loss on disposal is recognised. Treatment of disposal depends on whether control is lost or not. Thus, if control is lost, the exchange difference attributable to the parent is reclassified to profit or loss from foreign currency translation reserve in other comprehensive income. - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management India - taxmanagementindia - ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
