25 May 2009
A Company has a Foreign Currency loan but the repayment is being made by a bank in India subsequent to an agreement it entered to repay that loan and the Company will pay the bank here in India a fixed sum in Indian Rupees only towards that Foreign Currency loan. The recording of transaction is in INR and the reporting currency is iNR. In this case, will there be any necessity to account for exchange fluctuation in the books of the Company as this is a Foreign Currency loan? But the issue here is the repayment is in iNR.
CAclubindia
