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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: TDS :: cpt :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: form 3cd
« ICAI »
 Public Notice in the matter of wrong marketing of ICAI course by private colleges/educational institutes.
 Guidance Note on Audit of Consolidated Financial Statements (Revised 2016) issued by the Auditing and Assurance Standards Board
 Clarifications regarding exemptions in a paper(s) in CA Examinations
 Request to give suggestions on the Draft Rules and Regulations to the Insolvency and Bankruptcy Code, 2016 as issued by the Ministry of Corporate Affairs.
 Hosting of exemption(s) in a paper granted in Intermediate and Final examinations, valid for November 2016
 The Chartered Accountants’ Students Benevolent Fund (CASBF)
 Details of Roll Nos. and Exam Centres of PQC Exams-Nov. 2016
 Group to review and realign the provisions of Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988
 Request for improving of annual filing compliance by pursuing companies so as to help the Ministry of Corporate Affairs in achieving the targeted compliance.
 Zone-shifting of candidates for NOVEMBER - 2016 CA Exams
 CPE Events 10 October - 15 October 2016

ICAI to seek chambers views on MTM norms
March, 12th 2009

Accounting and auditing rule-maker Institute of Chartered Accountants of India (ICAI) will meet industry leaders soon to decide whether companies should be exempted this year from the accounting requirement of showing losses on their foreign exchange contracts due to the fluctuations in their market price.

The accounting regulator decided to seek industry views after it faced divergent opinions at its decision making council. ICAI will meet representatives from industry bodies such as the Confederation of Indian Industries, Federation of Indian Chambers of Commerce and Industry and Assocham to take a final call if it should suspend mark-to-market norms at least for the time being.

On the basis of representations, a group was constituted to look into the accounting aspects of changes in foreign exchange rates. As there are divergent views within the group, an open meeting will be held with the chambers to look into the issue, ICAI president Uttam Prakash Agarwal said.

The chambers had objected to ICAIs announcement in April 2008 asking companies having derivative exposure to account for or disclose their losses incurred on foreign exchange transactions. Their representation claimed that corporate houses having forex exposure will be put into a disadvantage with their balance sheet showing figures that are uncompetitive in comparison to their global competitors.

Accounting experts who have raised their voice against introducing MTM accounting in India immediately, have also said that globally companies are being exempted from these stringent accounting norms, which are typically driven by fair value (current market price as against cost of purchase). MTM is an accounting requirement of assigning a value to a position held in a financial instrument based on the current market price of the instrument.

A senior chartered accountant who has been lobbying in favour of suspension of the mark-to-market accounting norms, on conditions of anonymity, said, MTM accounting pre-supposes that there is an open, fair and knowledgeable market. The markets in the present conditions is not normal, it is artificially distorted across the world and the values represented today are not representative values.

The ICAI in March last year had suggested that companies should either adopt the derivative accounting format under Accounting Standard (AS) 30 on financial instruments recognition and measurement, or mark-to-market all outstanding derivative contracts on the balance sheet date.

Adopting AS-30, which was made recommendatory from April 1, 2009, was difficult for corporate houses as this standard requires a lot of changes in the regulatory regime including the Companies Act.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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