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    Question

    A company has an outstanding foreign currency loan of

    USD 1 million. During the financial year, fluctuations in the ₹/USD exchange rate resulted in a foreign exchange loss of ₹50,000. As per applicable accounting standards, this exchange loss should be recognized in:
    A OCI Correct Answer Incorrect Answer
    B P&L Correct Answer Incorrect Answer
    C Equity Correct Answer Incorrect Answer
    D Deferred tax Correct Answer Incorrect Answer
    E Revaluation reserve Correct Answer Incorrect Answer

    Solution

    Monetary item exchange differences go to profit & loss.

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