Multiple choice

In case of foreign operations, the foreign exchange difference on translation of trial balance in Indian currency shall be

  1. capitalized

  2. transferred to P and L a/c

  3. deferred for amortization in future

  4. included in the valuation of inventory
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As per AS -11 “The effects of changes in foreign exchange rates“ in case of foreign operations, the foreign exchange difference on translation of trial balance in indian currency shall be transferred to the profit and loss account.

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