AS-11

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2010 If a Indian company is having Foreign Non-Integral Subsidary then at the time of conversion into indian currency all asset including Share capital and investment of foregin subidary into his subsidary is also need to convert at closing rate.

Madhusudan Bohra

Madhusudan Bohra (Expert)
Follow

13 March 2010 All B/s items (including share capital) to be converted at closing rate.
All p&l items to be converted at averate rate for the year (since it is not possible to convert at the transaction date rate).

Retained earnings to be converted at the rate at which they occurred in previous years.

While consolidating the financials share capital of the foreign entity and investment in the parent company will be eliminated. Diff, if any, shall be treated as foreign currency translation reserve and shall be part of statement of changes in equity.

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2010 Thank You sir, Further if this foreign subsidary company (Y) is also having another subidary (Z), then whether at the time of consolidation of Parent company (X) we need to convert Investment of foregin subsidary (y)in share capital of his subsidary i.e. Z and need to transfer exchagne diff. into Transaltion reserves.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now