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Doubt in illustration 11 (M Ltd and G Ltd)

Financial Reporting

Sir, in illustration 11, in the books of M Ltd, the forex gain of Rs.24 is booked for a monetary item (A/c receivable of G Ltd - by restating it from 83 Euro to 85 Euro), and not on inventory. Then why is that reversed in the consolidated financials, sir?


Varshini Pandiarajan

Varshini Pandiarajan

CA Final

30

20-Mar-24 14:30

66

Answers (1)

Gain/loss on intracompany transaction reversed. You will understand this in Ind AS 110.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

23-Mar-24 21:11

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