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, dated 09.08.2012
All the Regional Directors,
All the Registrar of Companies/Official Liquidators
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 46A of Accounting Standard-11.