How are foreign exchange differences to be recognized.

Manual - ICDS VI : Effects of Changes in Foreign Exchange Rates

In case of monetary items (money held and assets receivable or liabilities payable in fixed/ determinate amounts of money), exchange differences arising on settlement/ on last day of the year are to be recognized as income or expense in that financial year. In case of non- monetary items, exchange differences arising on conversion on last day of the year is not to be recorded as income or expense of that financial year.

Dated: 30-8-2017