Disclosure of Exchange Difference on sale of Goods as per revised schedule VI

[Siraj Shaikh]

Dear Collegues,

 As per the revised schedule VI, the exchange difference on sale of goods be treated as part of Finance Cost or Other Expenses ?

[CAGOPALJI AGRAWAL]

Exchange difference attributable to borrowings costs can only partake the part of finance cost not otherwise like in the case of sale of goods.

AI Summary

Exchange difference classification: borrowings-linked differences are finance cost, other sales-related differences are other expense. Exchange differences attributable to borrowing costs qualify as finance cost; exchange differences arising from the sale of goods that are not linked to borrowings should be presented as other expense rather than as finance cost.