Clarification on Para 46A of notification number G.S.R. 914(E) dated 29.12.2011 on Accounting Standard 11 relating to “The effects of Changes in Foreign Exchange Rates”

Circular No.25/2012;  F. No.17/133/2008-CL-V
Government of India; Ministry of Corporate Affairs

Dated 09.08.2012

All the Regional Directors, All the Registrar of Companies/Official Liquidators,  All Stakeholders

 Sub: Clarification on Para 46A of notification number G.S.R. 914(E) dated 29.12.2011 on Accounting Standard 11 relating to “The effects of Changes in Foreign Exchange Rates”.

Sir,

The Ministry has received several representations from industry associations that Para 6 of Accounting Standard-11 and Para 4(e) of AS-16 are posing problems in proper implementation of Para 46A of notification 914(E) dated 29.12.2011. In order to resolve the problems faced by industry, it is hereby clarified that Para 6 of Accounting Standard-11 and Para 4(e) of the Accounting Standard-16   shall not apply to a company which is applying clause 46-A of Accounting Standard-11.

Yours faithfully,

(J.N. Tikku)

Joint Director