Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
TMI Short Notes

Home TMI Short Notes Income Tax All Notes for this Source This

How to recognise the exchange difference In respect of transactions that are settled beyond the end of the previous year.

  • Contents
  • Plus+

Manual - ICDS VI : Effects of Changes in Foreign Exchange Rates

In respect of transactions that are settled beyond the end of the previous year, AS 11 provides that the exchange difference is to be recognised in each intervening period up to the date of final settlement.

For example, if a monetary item (debtor) is accounted for ₹ 100 and is settled subsequently after 3 years for ₹ 120, the exchange gain or loss on settlement or conversion would be accounted and treated as income or expense (except in case of such items relating to non-integral foreign
operations).

 

 

Dated: 30-8-2017



 

 

Quick Updates:Latest Updates