HARISH BANSAL (student) 23 July 2014
In the F.Y.2012-13, A holding Company gave foreign loan to its foreign subsidry, but at the end of F.Y. 2012-13, the Holding Company forgot to re-instate the Foreign loan amount as per AS-11. But in this F.Y. 13-14 the Company re- instated the Foreign loan amount as per AS-11 through which their is foreign exchange gain to holding Company. Now Holding Company wants to bifurcate the exchange gain between this year and previous financial year. So pls help me how the holding company will describe it as prior period income in its Statement of Profit & Loss as per AS-5.
Thanks in Advance.