DBOD.No. BP.BC.42/21.04.018/98

May 19, 1998

Vaishakha 29, 1920 (Saka)


All Commercial Banks

(excluding Regional Rural Banks)

Dear Sir,

Accounting standard 11 (revised)

Please refer to our Circular DBOD. No. BP.BC. 68/21.04.018/96 dated June 5, 1996 regarding the applicability of AS 11 (Revised) for (i) revaluing foreign currency assets and liabilities and revenue items and booking of foreign exchange transactions done in India and (ii) for the purpose of translation of assets and liabilities of foreign branches of Indian banks. We advise that the issue of applicability of AS 11 (Revised) to banks is still under examination. With a view to avoiding delay in the finalisation of balance sheets of banks for the financial year ended 31 March, 1998, banks are advised to follow the guidelines prescribed in the above mentioned Circular dated June 5, 1996 for the Accounting Year 1997-98 also.

Yours faithfully,

(C.R. Muralidharan)

General Manager