Director report-foriegn exchange earnings & outgo

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manish kumar sinha (Querist)
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03 November 2012 The disclosure of Foreign exchange earnings and outgo (total foreign exchange used and earned), how we need to disclose the figures i.e either on accrual basis or on payment basis.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 November 2012 1) Foreign exchange earnings should be disclosed on accrual basis since company has to follow accural concept of accounting.

2) Foreign exchange out go also on accrual basis , on the above reasoning,except for dividend were in disclosure is required for remittance,meaning thereby cash basis, vide clause 5 (viii)(d) of 'General Instructions For Preparation of Statement of P& L' as per revised schedule VI of the Companies Act,1956.

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