Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: empanelment :: cpt :: articles on VAT and GST in India :: list of goods taxed at 4% :: TDS :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT RATES :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government

Breather for India Inc as Accounting Standards 11 deferred to 2011
March, 26th 2009

In a major relief for India Inc, the National Advisory Committee on Accounting Standard (NACAS), a government-appointed body, has postponed the implementation of Accounting Standard 11 (AS 11) to 2011.

This accounting standard deals with mark-to-market provisioning in corporate profit and loss accounts for foreign exchange-related gains and losses.

The NACAS decision means domestic firms have the option not to provide for foreign exchange losses or gains till 2011.

Indian companies, which were hit by both the rapid appreciation and depreciation of foreign currencies, had been lobbying for the implementation of AS 11 to be postponed, saying it would adversely affect them at a time when they were coping with the global financial crisis.

The decision was being eagerly awaited by most Indian companies, since many of them would have had to book further mark-to-market losses, with the rupee touching 52 against the US dollar. Most of them raised debt when the Indian currency was at sub-Rs 42 levels against the dollar.

The government seems to have given in to industrys demands, said a senior ICAI member. In the name of helping industry, it has suspended AS 11, which has been working very well till now. Companies were reporting forex fluctuations when there were making profits, but now that they are making losses, they don't want to report, he added.

ICAI President Uttam Prakash Agarwal could not be reached for comment. In an earlier interview to Business Standard, he had opposed a relaxation of AS 11 provisions. There were two views on this issue and a consensus could not be reached in the ICAI council meeting," he said at that time.

NACAS is the final authority on implementing accounting standards in India. The decision comes after the Council of The Institute of Chartered Accountants of India (ICAI), the statutory body that governs the profession in India, was unable to arrive at a decision on the issue.

Before the council meeting, the Accounting Standards Board (ASB) of ICAI referred the issue to a sub-committee, which recommended that companies book the losses over a period of time. Sources said ASB referred the issue to the ICAI council without giving a verdict.

Based on legal opinion, several large companies do not follow AS 11, but comply instead with Schedule VI of the Companies Act which stipulates that as a result of exchange rate fluctuation, any change in the repayment needed to be added or deducted from the cost of fixed assets. Schedule VI allows such losses to be capitalised.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions