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Accounting Standard (AS) 11

108 Accounting Standard (AS) 11 The Effects ofChanges inForeign Exchange Rates Contents OBJECTIVE SCOPE Paragraphs 1-6 DEFINITIONS 7 foreign CURRENCY TRANSACTIONS8-16 Initial Recognition 8-10 Reporting at Subsequent Balance Sheet Dates11-12 Recognition of ExchangeDifferences13-16 Net Investment in a Non-integral ForeignOperation 15-16 FINANCIAL STATEMENTS OF FOREIGNOPERATIONS 17-34 Classification of ForeignOperations17-20

specified: 7.1 Average rate is the mean of the exchangeratesin force during a period. 1 This Standard is applicable to exchange differences on all forward exchange contracts including those entered into to hedge the foreign currency risk of existing assets and liabilities and is not applicable to the exchange difference arising on forward exchange

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