21 August 2008
Many subsidiary companies located in India close their books on monthly basis and report to parent company located outside India.
In this regard, please let me know how do they handle issues like, gratuity(based on actuarial valuation done by third party),auditors fees ,Foreign exchange loss on fixed assets,income tax provision etc, which are known only at the end of the year in their monthly accounts.
Thanks for yor reply.Now it is clear that the items I have mentioned are to be appropriated on monthly basis.
My question is 'how'.For example--
Fixed Assets are bought from abroad on loan. The loss or gain on foreign exchange will be known after ascretaining the foreign exchange rate as on 31 March which cannot be predicted in advance. So how does one appropriate the loss/ gain on this transaction over all the months in a year?
I have similar doubts concerning other times which I have mentioned in my initial question.
06 October 2009
Hello, is this an old query still pending? You can send me a Pm if yes....I m trying to take all old pending queries in Accounting Forum......Thanx.
06 October 2009
Hello, is this an old query still pending? You can send me a Pm if yes....I m trying to take all old pending queries in Accounting Forum......Thanx.
CAclubindia
