AS 11 - 156 Accounting Standard (AS) 11 (revise d 2003) The...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
156 Accounting Standard (AS) 11 (revised 2003) The Effects of Changes in Foreign Exchange Rates Contents OBJECTIVE SCOPE Paragraphs 1-6 DEFINITIONS 7 FOREIGN CURRENCY TRANSACTIONS 8-16 Initial Recognition 8-10 Reporting at Subsequent Balance Sheet Dates 11-12 Recognition of Exchange Differences 13-16 Net Investment in a Non-integral Foreign Operation 15-16 FINANCIAL STATEMENTS OF FOREIGN OPERATIONS 17-34 Classification of Foreign Operations 17-20 Integral Foreign Operations 21-23 Non-integral Foreign Operations 24-32 Disposal of a Non-integral Foreign Operation 31-32 Change in the Classification of a Foreign Operation 33-34 ALL CHANGES IN FOREIGN EXCHANGE RATES 35 Tax Effects of Exchange Differences 35 Continued./. .
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
157 FORWARD EXCHANGE CONTRACTS 36-39 DISCLOSURE 40-44 TRANSITIONAL PROVISIONS 45 APPENDIX
Background image of page 2
158 AS 11 (revised 2003) Accounting Standard (AS) 11* (revised 2003) The Effects of Changes in Foreign Exchange Rates (This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its objective and the Preface to the Statements of Accounting Standards 1 .) Accounting Standard (AS) 11, The Effects of Changes in Foreign Exchange Rates (revised 2003), issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2004 and is mandatory in nature 2 from that date. The revised Standard supersedes Accounting Standard (AS) 11, Accounting for the Effects of Changes in Foreign Exchange Rates (1994), except that in respect of accounting for transactions in foreign currencies entered into by the reporting enterprise itself or through its branches before the date this Standard comes into effect, AS 11 (1994) will continue to be applicable. The following is the text of the revised Accounting Standard. Objective An enterprise may carry on activities involving foreign exchange in two ways. It may have transactions in foreign currencies or it may have foreign operations. In order to include foreign currency transactions and foreign * Originally issued in 1989 and revised in 1994. The standard has been revised again in 2003. 1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 2 Reference may be made to the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Changes in Foreign Exchange Rates 159 operations in the financial statements of an enterprise, transactions must be expressed in the enterprise s reporting currency and the financial statements of foreign operations must be translated into the enterprise
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 19

AS 11 - 156 Accounting Standard (AS) 11 (revise d 2003) The...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online