Forums
Back
AS 11
Accountancy
If the foreign currency loan is payable in annual instalments, then the exchange difference arising during each year of instalment will be transferred to P/L for each year ending. For e.g., 75 USD payable in 3 equal annual instalments. For the first year ended the exchange difference will be on the basis of 25 USD and that will be transferred to P/L for that year and similar treatment for next 2 years. But in the image below, full exchange difference is transferred in the first year itself as if it was not on instalment basis. Pls clarify.
Answers (3)
Your Reply