Ministry Of Corporate Affairs is looking into the accounts of big corporates with "huge turnovers" to assess whether these firms are reflecting correctly the losses or gains arising from transactions involving foreign currency in their account books.The ministry has roped in the Institute of Chartered Accountants for the purpose and is trying to find out whether there is genuine confusion over the issue of recording exchange differences or companies are taking advantage of the confusion to impact the profitability "MCA is looking into the matter. We will analyse all reports regarding the matter and will see if there is some genuine trend emerg- ing or if there is any confusion. We will take strict actions if companies are found guilty of misdeed," an official source said.
Sources added that one doesn't know the number of companies which are following such practices.
The number may be in hundreds."So the ministry is trying to sort out the situation and the work is on in collaboration with ICAI," the source added.When contacted, ICAI President Ved Jain said the Financiadded.
The standard requires companies to treat the exchange difference in the Profit and Loss Ac- COunt of the financial statements.PTI
By Sumit Kumar, Section News
Posted on Fri Oct 03, 2008 at 02:09:15 AM EST
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