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52 Corporate Finance BRILLIANT’S
AS-11: The Effect of Changes in Foreign AS-11: \$m°aoZ EŠgM|O Xam| _| n[adV©Z H$m à^md
Exchange Rates
Effect of changes in Foreign Exchange Rate \$m°aoZ EŠgM|O Xam| _| n[adV©Z H$m à^md àma§^ {H$`o
shall be applicable in respect of Accounting J`o AH$mC§qQ>J nr[a`S> Ho$ g§~§Y _| `m 1-4-2004 Ho$
Period commencing on or after 01-04-2004 and
is mandatory in nature. níMmV² bmJy hmoJr VWm ì`dhma _| Amdí`H$ h¡&
Objective: To decide which exchange rate CÔoí`… {ZU©`> H$aZm {H$ H$m¡Z-gm EŠgM|O aoQ> Cn`moJ
to use and how to recognize foreign currency H$aZm h¡ VWm \$m`Z|{e`b ñQ>oQ>_|Q²>g _| \$m°aoZ H$a|gr
transactions and foreign operations in the
financial statements. >Q´>m§OoŠe§g VWm \$m°aoZ Am°naoe§g H$mo H¡$go Cn`moJ H$a|&
Disclosure: Effect of changes in Foreign {S>ñŠbmoOa… \$m°aoZ EŠgM|O aoQ> _| n[adV©Z H$m à^md
Exchange Rate, an enterprise should disclose EH$ à{Vð>mZ H$mo {ZåZ{b{IV nhbwAm| _§o {S>ñŠbmoO H$aZm
following aspects: Mm{hE…
Amount of Exchange Difference included A_mC§Q> Am°’$ EŠgM|O {S>\$a|g Hw$b bm^ `m hm{Z _|
in Net Profit or Loss, gpå_{bV H$s J`r h¡,
Amount accumulated in foreign exchange \$m°aoZ EŠgM|O Q´>m§gboeZ [aOd© _§o g§{MV am{e,
translation reserve,
Reconciliation of opening and closing \$m°aoZ EŠgM|O Q´>m§gboeZ [aOd© Ho$ AmonqZJ VWm
balance of Foreign Exchange translation ŠbmoqOJ ~¡b|g H$m [aH§${g{bEeZ&
reserves.
AS-12: Accounting for Government AS-12: JdZ©_§oQ> J«m§Q>²g Ho$ {bE AH$mC§qQ>J
Grants
The standard deals with accounting for `h ñQ>¢S>S>© JdZ©_|Q> J«m§Q>²g Ho$ {bE AH$mC§qQ>J na
government grants. Government grants are MMm© H$aVm h¡& H$^r-H$^r JdZ©_|Q> J«m§Q²>g H$mo AÝ` Zm_
sometimes called by other names such as O¡go {H$ gpãgS>rO, H¡$e B§g|{Q>ìg, S²>`yQ>r S´>m°~¡Šg Am{X ^r
subsidies, cash incentives, duty drawback etc. H$hm OmVm h¡&
This standard does not deal with: `h ñQ>¢S>S>© {ZåZ{b{IV H$s MMm© Zht H$aVm h¡…
(a) The special problems arising in accounting (a) ~XbVo _yë`m| Ho$ à^mdm| H$mo àX{e©V H$aZo dmbo
for government grants in financial \$m`Z|{e`b ñQ>oQ>_|Q²>g _§o `m EH$ g_mZ àH¥${V H$s
statements reflecting the effects of nyaH$ gyMZm _| JdZ©_|Q> J«m§Q>²g Ho$ {bE AH$mC§qQ>J _|
changing prices or in supplementary
information of a similar nature, CËnÝZ hmoZo dmbr {deof g_ñ`mE±&
(b) Government assistance other than in the (b) JdZ©_|Q> J«m§Q²>g H$mo N>mo‹S>H$a AÝ` emgH$s` ghm`Vm&
form of government grants,
(c) Government participation in the owner- (c) à{Vð>mZ Ho$ ñdm{_Ëd _| emgH$s` gh^m{JVm&
ship of the enterprise.
AS-13: Accounting for Investments AS-13: B§doñQ>_|Q²>g Ho$ {bE AH$mC§qQ>J
This standard deals with accounting for `h ñQ>¢S>S>© à{Vð>mZ Ho$ \$m`Z|{e`b ñQ>oQ>_|Q²>g ‘|
investments in the financial statements of B§doñQ>_|Q²>g Ho$ {bE AH$mC§qQ>J VWm g§~§{YV Amdí`H$