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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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