AS 16 - Borrwoing Cost of FC Loan
This query is : Resolved
14 August 2010
One PSU has received FC Loan out of an international agreement for developmental purpose. In the notes to accounts, it said that it had not considered forex diff. in borrowing cost due to non-confirmation of balance by the foreign lender? Is this treatment correct? Interest had been calculated considering day balances?
14 August 2010
The FC loan should have been revalued at the forex rate prevailing at the date of Balance Sheet and accordingly FOREX gain or loss should have been recognised.(AS 11)
The question "Interest had been calculated considering day balances?" is not clear.
6. This Statement(AS 11) does not deal with exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs (see paragraph
4(e) of AS 16, Borrowing Costs).
The question "Interest had been calculated considering day balances?" is not clear.
6. This Statement(AS 11) does not deal with exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs (see paragraph
4(e) of AS 16, Borrowing Costs).
16 August 2010
Dear Jay
Resatement of Foriegen curency debt does not depand upone confirmation of lender
FC balance have to be reasted at rate prevaling on balance sheet date
Consequent exchange variation is charged to revnue as per As 11.Excahnge variation to the extent of interest cost is capitalized AS 16 for this purpose pls refer Acounting Sandard Interpreation (ASI)10
Resatement of Foriegen curency debt does not depand upone confirmation of lender
FC balance have to be reasted at rate prevaling on balance sheet date
Consequent exchange variation is charged to revnue as per As 11.Excahnge variation to the extent of interest cost is capitalized AS 16 for this purpose pls refer Acounting Sandard Interpreation (ASI)10
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- LTCG for Assmt year 26-27
- Tax liability on income of freelancer
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
