profit of rupees 3 lakh from hedging contract entered into for meeting out the loss in foreign currency payment towards an imported machinery purchase from Germany for rupees 90 lakhs
how to deal this adjustment as per icds
the profit is already credit in p&l account.
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PGBP ADJUSTMENT
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Gain shall be allowed as deduction on pro-rata basis..
what is prorata basis
if the hedging contract is settled after 31st March then it will b credited on pro-rata basis of months..
if contract entered and settled in same financial year, whole amount shall get credited to Profit and loss AC of the relevant F.Y.
if contract entered and settled in same financial year, whole amount shall get credited to Profit and loss AC of the relevant F.Y.
in may 2017 direct tax paper...ca final...such profit is not allowed as deduction and its is add back...as per sec 43(1) and 43A........it should be adjusted in cost of assets...and not in p&l
are u sure ...this may 2017 exam paper adjust is not correct
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