- Aug
- 18
- 2012
Clarification on Applicability of AS-11 & AS-16 to Companies
Clarification on Para 46A of notification number G.S.R. 914(E) dated 29-12-2011 on Accounting Standard 11 relating to “The effects of Changes in Foreign Exchange Rates”
Circular No. 25/2012, dated 9-8-2012
The Ministry has received several representations from industry associations that para 6 of Accounting Standard-11 and para 4(e) of AS-16 are posing problems in proper implementation of para 46A of notification 914(E) dated 29-12-2011. In order to resolve the problems faced by industry, it is hereby clarified that para 6 of Accounting Standard-11 and para 4(e) of the Accounting Standard-16 shall not apply to a company which is applying clause 46A of Accounting Standard-11.
Sandeep Kanoi+
Of course, enhances the improved profits but at the same time allowing indirectly capitalisation of revenue expenditure which is baisc departure of India GAAP. Let indian corporate experience volatility/natural market conditions of forex.