( Author )
03 August 2012
A company XLtd is a Sec 25 company engaged in Scientific research. As per the terms with one of the foreign agency, it received USD 500,000/- for research works. 80% of this i.e. USD 400,000/- is to be transferred to organizations in other countries for research. As on 31.03.2012, the USD 400,000/- is remaining undisbursed in the accounts of X Ltd.
As per the provisions of AS 11, the amt outstanding in USD is to be re-instated using the exchange rate as on 31.03.2012. Is it to be done in this case also?
IF yes, how should the profit/loss on this to be recognised? Will it to be credited to the P&L of the company?
Is it a loss/profit arising out of the company's business?
Under which head should this USD 400000/- to be stated in the Balance Sheet, as it is held under trust?