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 Accounting policy of Forex transactions. Compare the policy with the relevant accounting standard (AS and IAS)
 Observe the relevant items in the IS/CFS/BS and give your comments
 Observe the translations gains or losses if any

The consolidated revenue for Infosys in FY 2010 is Rs. 22,742 cr with a Year on Year growth of 4.8%. As per IFRS, the annual revenues stood at US $1,313 million, with a Year on Year growth of 2.5%.

Sensitivity of INR against USD
For every 1% change in INR against USD, the operating margin was affected by 0.4%.
Accounting Policy of Foreign Exchange Transactions – Infosys
Some salient features of the accounting policies of foreign transactions at Infosys are as follows: * All currency translations are done into the relevant functional currency at the exchange rate which is in effect on the Balance Sheet date. * Any gains (losses) due to the currency translations are included in the Income Statement. * The non-monetary assets and non-monetary liabilities are reported at their fair value. They are translated at the exchange rate on the date when the fair value was determined. * All transactions are translated into the functional currency at the exchange rate on the date of the transaction * All profits (losses) that have resulted due to the foreign currency translation are included in the income statement.
Functional Currency – Infosys
The functional currency for:
Indian Rupee
Infosys
Infosys BPO
Respective Local Currencies
Infosys Australia
Infosys China
Infosys Consulting
Infosys Mexico
Infosys Sweden
Infosys Brazil
Infosys Public Services

Infosys has 4 wholly owned subsidiaries. It has made significant investments in 2009-10 in these subsidiaries. They are reported in the local currency for the financial statements at the subsidiary locations. However, they are translated on the

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