The Ministry of Corporate Affairs (MCA) has notified two amendments to AS 11 The Effects of Changes in Foreign Exchange Rates. In accordance with the first amendment, the sunset date for transitional provisions to AS 11, which allow deferment/ capitalization of exchange differences arising on long-term monetary items has been extended till 31 March 2020.
The second amendment deals with the manner in which a company may opt to defer/ capitalize these exchange difference on long-term monetary items (Notification related to this can be accessed at the following Link :-
Date- 29th December, 2011Online GST Certification Course by TaxGuru & MSME- Click here to Join
GSR. :- In exercise of the powers conferred by clause (a) of sub‑ section (1) of Section 642 read with sub-section (1) of Section 210A and sub-section (3C) of Section 211 of the Companies Act, 1956 (1 of1956), the Central Government in consultation with the National Advisory Committee on Accounting Standards, hereby makes the following amendment in the Companies (Accounting Standards) Rules, 2006, hereinafter called the said rules, namely:-
1. (1) These rules may be called the Companies (Accounting Standards) Amendment Rules, 2011.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the said rules, in the annexure under the heading “B. Accounting Standard”, in the sub-heading “Accounting Standard (AS) 11” relating to “The Effects of Changes in Foreign Exchange Rates”, in paragraph 46, for the words and figures “46. In respect of accounting periods commencing on or after 7th December, 2006 and ending on or before 31′ March, 2012″, the following shall be substituted, namely :-
“46. In respect of accounting periods commencing on or after 7th December, 2006 and ending on or before 31′ March, 2020.
Joint Secretary to the Govt. of India
Foot Note: The Principal regulations were published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide GSR 739(E), dated the 7th December, 2006 and amended vide notification number G.S.R.212(E), dated the 27th March, 2008 and subsequently amended by GSR No. 225(E), dated the 31st March, 2009 and GSR No. 378(E), dated the 11th May, 2011.