Presentation of Foreign Currency Monetary Item Translation Difference Account (FCMITDA)

*Presentation of Foreign Currency Monetary Item Translation Difference
Account (FCMITDA)*
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In accordance with the ICAI FAQ on amendment to AS 11 issued on 18 May
2009, FCMITDA was required to be presented separately on the face of the
balance sheet, more in line with presentation used for deferred tax asset/
liability.

After the issuance of the revised schedule VI (which does not include any
presentation for FCMITDA), the ICAI has reconsidered its view on the
matter. Now, the ICAI is of the view that FCMITDA is not an asset/
liability of a company. Rather, it represents foreign currency translation
loss.

Therefore, the ICAI has stated that debit or credit balance in FCMITDA
should be presented on the "Equity and Liabilities" side of the balance
sheet under the head "Reserves and Surplus," as a separate line item