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: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT Audit :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARD :: TDS
 
 
ICAI »
 President's Message - May 2017
 Commencement of the Next Batch of the Certificate Course on Wealth Management and Financial Planning to be commenced on 3rd June, 2017 at Chennai : An initiative of CCBMP, ICAI
 Commencement of the Next Batch of the Certificate Course on Wealth Management and Financial Planning to be commenced on 8th July, 2017 at Kolkata : An initiative of CCBMP, ICAI
 Group to look into the intricacies involvced in areas pertaining to the Disciplinary Mechanism
 Exposure Draft of Amendments to Ind AS 101, First-time Adoption of Indian Accounting Standards
  Requirements for passing Information Systems Audit (Assessment Test)
  Exposure Draft of Clarifications to Ind AS 115, Revenue from Contracts with Customers
 Exposure Draft of Clarifications to Ind AS 115, Revenue from Contracts with Customers
 Exposure Draft of Clarifications to Ind AS 115, Revenue from Contracts with Customers
 Reconstitution of Group to study the existing norms for the appointments/re-appointments of statutory / internal auditors
 Reconstitution of Group to study and suggest changes in the Guidelines relating to Networking of CA Firms

ICAI makes changes in norms for reporting forex gains, losses
April, 03rd 2013

Accounting regulator ICAI has made it mandatory for companies to report foreign currency gains and losses separately in their financial statements, a move that will make it difficult for firms to dress up numbers.

Companies will now have to separately state the impact of foreign exchange fluctuations in their balance sheets.

An accounting expert said the move will ensure that forex related losses would be recorded only in the Balance Sheet and not in the Profit & Loss Account of a company.

"This (change) will help a reader of the financial statement understand as to how much impact the foreign currency has had on the company," Institute of Chartered Accountants of India (ICAI) President Subodh Kumar Agrawal said here Tuesday.

The move will help avoid divergence in accounting and bring more transparency in reporting of numbers.

From now on, companies should show the Foreign Currency Monetary Item Translation Difference Account (FCMITDA) separately, under which they have to show foreign currency fluctuations "under the 'Equity and Liabilities' side of the balance sheet under the head 'Reserve and Surplus'.

According to accounting watchdog ICAI, the move is based on the premise that foreign currency translation loss is neither a resource nor any future economic benefit would flow to the entity from there.

The changes have been approved at ICAI's recent council meeting.

Further, ICAI has suggested changes in reporting of gains or losses with regard to hedging instruments related to long term foreign currency items.

ICAI has said that "exchange difference related to the hedging instrument obtained to cover the exchange risk" on long term foreign currency monetary item should also be separately shown in the balance sheet.

The suggestion is being sent to the National Advisory Committee on Accounting Standards (NACAS).

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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