In case of a corporate entity , who take a forward contract to hedge the risk of future export proceeds, subsequently the said forward contract has been cancelled what is the treatment of forward contract cancellation loss?
According to revised schedule vi the same is reported under finance cost which contain 3 sub – heads 1. Interest expense, 2. Other borrowing cost and 3. Applicable net gain/loss on foreign currency transactions and translation
Weather the said loss reported under other borrowing cost as bank charges or under Applicable net gain/loss on foreign currency transactions and translation as exchange loss. Is it treated as Transaction loss or otherwise ?
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