As-11 urgent

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Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 is there any provision in AS-11 which says that a company can capitalize the loss on account of revaluation of term loan,(loan taken in foreign exchange)due to change in foreign exchange rates

if there is a provision for the same than what are the requirements for the same.

CA Kishore Tallam

CA Kishore Tallam (Expert)

20 April 2012 Till FY 2010-11, there is such provision but not as per AS 11 but as per notification given by the MCA. U can capitalise the currency fluctuations on such borrowings. But u need to disclose the same in ur notes to accounts.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 but sir is this provision still in place ?
because it is written in revise schedule 6 that if there is any diffrence between schedule 6 and AS/Companies Act then AS/Companies Act prevails.

so now can we still capitalize the loss on A/c of term loan due to Forex rates in FY 11-12.

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 sir pls reply fast.

CA Kishore Tallam

CA Kishore Tallam (Expert)

20 April 2012 Pls see my previous reply. I said till 2010-11 that provision is there. After revised sch Vi is in picture, since standards prevail, that provision will not be applicable.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 thanks a lot for instant replies. :)

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 sir can u pls provide me the mca's notification's details.
even the year will do.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

20 April 2012 Please see The Companies (Accounting Standards) (Second Amendment) Rules ,2011 dated 29/12/2011. Can be followed even after Financial year 2010-11.

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CA Kishore Tallam

CA Kishore Tallam (Expert)

20 April 2012 Dear Sir,
As per Companies As Amendment rules, this provision will not be extended beyond March 31, 2012. Hence, this provision is no more in force.

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 finally for Financial year 11-12 a company can capitalize the loss due to exch. rate.

thank u...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

20 April 2012 Kishore Ji

Cut off date is 31/3/2020. Please see notification in https://mca.gov.in/Ministry/notification/pdf/Companies_Amendment_GSR_913E_2011.pdf

CA Kishore Tallam

CA Kishore Tallam (Expert)

20 April 2012 Dear Sir,
Agree with u. Thanks for the information. It is till March 31, 2020. This prevails over AS 11.

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