3. Foreign Currency
Transaction :
Any transaction which is
recorded other than the
reporting currency
Foreign Currency
Translation :
Process of
converting the
financial statement
of a foreign company
into the reporting
currency of the
parent company
Foreign Exchange
Contract :
A contract to buy or
sell foreign currency
entered today for a
future date at an
agreed rate
4.
5.
6.
7. Followingarefewofthe
companiesthatfollowAS-11
• Tata Consultancy Services Limited
(TCS)
• Infosys Limited
• Wipro Limited
• HCL Technologies Limited
• HDFC Bank Limited
• ICICI Bank Limited
• State Bank of India (SBI)
• Reliance Industries Limited
• Maruti Suzuki India Limited
• Bajaj Auto Limited
• Hindustan Unilever Limited
• ITC Limited
Out of the above list we decided to go for
ICICI Bank Limited.
8. ApplicationofAS-11in
ICICIBankLtd.
In the financial year 2022-23, the ICICI Bank limited took the
loan from a consortium of banks led by bank of Nova Scotia
and ING bank in July 2022 of 500 million US Dollar at a rate of
₹79.19 per US Dollar
Pass the above entry in the books of accounts of ICICI Bank
limited :
on 1st July Bank A/C DR. 40000 CR
TO BANK LOAN LTD 40000 CR
ON THIS DATE ICICI LTD TAKE THE LOAN FROM ₹79.19
ON 31ST March, 2023 the Dollar Changes From ₹79.19 to
₹81.72 i.e. there is a change of ₹2.53
FOREIGN EXCHANGE DIFFERENCE A/C DR. 0.60CR
TO BANK LOAN A/C 0.60CR
P&L A/C DR. 0.60CR
TO FOREIGN EXCHANGE DIFFERENCE A/C 0.60CR
9. CONCLUSION
ICICI Bank adopted AS 11, The Effects of Changes in
Foreign Exchange Rates, to improve the accuracy and
transparency of its financial reporting. The bank has a
significant number of foreign currency transactions and
foreign operations, and AS 11 provides a more consistent
and reliable framework for accounting for these
transactions and operations.
ICICI Bank is committed to complying with all of the
requirements of AS 11, and it has the necessary systems
and controls in place to do so. The bank believes that
adopting AS 11 is in the best interests of its shareholders
and other stakeholders.
