Announcement- Presentation of Foreign Currency Monetary Item Translation Difference Account (FCMITDA)
In accordance with the ICAI FAQ on amendment to AS 11 issued on 18 May 2009, FCMITDA was required to be presented separately on the face of the balance sheet, more in line with presentation used for deferred tax asset/ liability. After the issuance of the revised schedule VI (which does not include any presentation for FCMITDA), the ICAI has reconsidered its view on the matter. Now, the ICAI is of the view that FCMITDA is not an asset/ liability of a company. Rather, it represents foreign currency translation loss. Therefore, the ICAI has stated that debit or credit balance in FCMITDA should be presented on the "Equity and Liabilities" side of the balance sheet under the head "Reserves and Surplus," as a separate line item.