Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: form 3cd :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: VAT RATES :: VAT Audit :: TDS :: due date for vat payment :: ACCOUNTING STANDARD
 
 
ICAI »
 ICAI - Guidance Note on Report Under Section 92E of The Income-Tax ACT, 1961 (Transfer Pricing) (Revised 2017)
 FAQs on Ethical Issues relating to GST
 ICAI International Conference, 8-9 December 2017, Mumbai
 Report on Audit Quality Review (2016-17) of the Quality Review
 CPE Events 13th November - 18th November 2017
 Information Systems Audit (ISA) Course Assessment Test which is open to the members of the Institute, will be held on 23rd December, 2017 (Saturday) from 9.00 AM to 1.00 PM (IST) at 61 Cities.
 ICAI Survey for Capacity Building and Global Presence of Indian CA Firms - Request to submit response by November 15, 2017
 Paper 2, Strategic Financial Management of Final Examination, Group - I scheduled on 3rd November 2017 (Friday) at Chennai only, was postponed, on account of heavy rains and disruption of normal life there. The said examination will now be held 17th November 2017 (Friday).
 Group to Review the Criteria for Formation of Branch
 Postponement of Group I Paper- 2 Strategic Financial Management of Final Examination, Scheduled on 3rd November, 2017 (Friday) in Chennai (in The State of Tamil Nadu) Only.
 President's Message - November 2017

Presentation of Foreign Currency Monetary Item Translation Difference Account.
March, 31st 2013
                                         Announcement



     Presentation of Foreign Currency Monetary Item Translation Difference
                                    Account


1.      In the year 2009, the Ministry of Corporate Affairs amended Accounting Standard (AS)
         11, The Effects of Changes in Foreign Exchange Rates by inserting Paragraph 46. As
         per Paragraph 46, in respect of accounting periods commencing on or after 7th
         December, 2006 and ending on or before 31st March, 2011, at the option of the
         enterprise, exchange differences arising on reporting of long-term foreign currency
         monetary items at rates different from those at which they were initially recorded
         during the period, or reported in previous financial statements, insofar as they relate to
         the acquisition of a depreciable capital asset, can be added to or deducted from the cost
         of the asset and shall be depreciated over the balance life of the asset, and in other
         cases, can be accumulated in a " Foreign Currency Monetary Item Translation
         Difference Account" in the enterprise's financial statements and amortised over the
         balance period of such long-term asset/liability but not beyond 31st March, 2011, by
         recognition as income or expense in each such periods.




2.      On 29th December, 2011, the MCA, through the Companies (Accounting Standards)
        Amendment Rules, 2011, further extended the date of amortisation of the balance in
        the FCMITDA to 31st March, 2020 instead of 31st March, 2011. The MCA on
        December 29, 2011, inserted paragraph 46A in the AS 11, The Effects of Changes in
        Foreign Exchange Rates through Companies (Accounting Standards) (Second
        Amendment) Rules, 2011, on similar lines as paragraph 46.


3.      As in the Revised Schedule VI format, no line item has been specified for the
        presentation of "Foreign Currency Monetary Item Translation Difference Account
        (FCMITDA)", the Council of the Institute at its 324th meeting held on March 24-26,
        2013 at New Delhi, considered the issue regarding the presentation of the FCMITDA
        in the balance sheet.


4.       The Council noted that the Framework on Preparation and Presentation of Financial
        Statements issued by ICAI, defines an asset as follows:

          "An asset is a resource controlled by the enterprise as a result of past events from
          which future economic benefits are expected to flow to the enterprise."

        Where the balance in FCMITDA represents foreign currency translation loss, it does
        not meet the above definition of `asset' as it is neither a resource nor any future
        economic benefit would flow to the entity therefrom. Accordingly, such balance cannot
        be reflected as an asset.
   .


   Accordingly, the Council decided that debit or credit balance in FCMITDA should
   be shown on the "Equity and Liabilities" side of the balance sheet under the head
   `Reserves and Surplus' as a separate line item.


5. The aforesaid decision of the Council supersedes the following Frequently Asked
   Question on AS 11 notification ­ Companies (Accounting Standards) Amendment
   Rules, 2009 (G.S.R. 225 (E) dt. 31.3.09) issued by Ministry of Corporate Affairs on
   May 18, 2009, which was issued by the Accounting Standards Board of ICAI on May
   18, 2009:

   "(14) How `Foreign Currency Monetary Item Translation Difference Account' should
        be presented in the Balance Sheet?




   Response

   The `Foreign Currency Monetary Item Translation Difference Account' should be
   shown as a separate line item in the Balance Sheet, in line with treatment given to
   Deferred Tax Asset/Liability, i.e. after the head `Investments' or after the head."
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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