Foreign exchange transaction
This query is : Resolved
CA ABHISHEK PANDEY
(Querist)
21 January 2015
hello friends,
please help me out with this transaction.
Indian holding company has given loan to its foreign subsidiary in the F.Y. 14-15 AMOUNTING TO $30000 (@ 61rs) the entire amount is repaid back by the foreign subsidiary in the same F.Y.(@ rs 60) but there was loan outstanding to the tune of $100000 from past years which was not paid by the subsidiary.how the rate difference will be accounted
please help me out with this transaction.
Indian holding company has given loan to its foreign subsidiary in the F.Y. 14-15 AMOUNTING TO $30000 (@ 61rs) the entire amount is repaid back by the foreign subsidiary in the same F.Y.(@ rs 60) but there was loan outstanding to the tune of $100000 from past years which was not paid by the subsidiary.how the rate difference will be accounted
Amol S Joglekar
(Expert)
21 January 2015
Assuming loan to be with ZERO percent rate of interest
Book the loss on account of exchange rate fluctuations. (30,000 in the instant case.)
Book the loss on account of exchange rate fluctuations. (30,000 in the instant case.)
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