The National Advisory Committee on Accounting Standards (NACAS) suggested companies to minimize their losses on account of high foreign exchange rates by allowing them to keep aside such unexpected gains or losses from their profit and loss account. The Ministry of Corporate Affairs (MCA) is expected to decide on this matter in the week ahead. The move is towards companies, having huge foreign exchange borrowings, to quote better financial results for the coming quarter.
The implementation of Accounting Standard-11 (AS11), which deals with foreign exchange fluctuations, may be deferred. Once this system is implemented, the companies can adjust the exchange differences according to the cost of underlying asset in their balance sheets.
The implementation of Accounting Standard-11 (AS11), which deals with foreign exchange fluctuations, may be deferred. Once this system is implemented, the companies can adjust the exchange differences according to the cost of underlying asset in their balance sheets.
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