AS 6, 10 & 11

This query is : Resolved

Subrahmanyam (Querist)
Follow

03 November 2009 Does the increase / decrease in long-term liability on a/c of exchange fluctuations effect cost.
How is this possible - Under AS 11 is this not taken to P&L?

Subrahmanyam

Subrahmanyam (Querist)
Follow

07 November 2009 Any replies...?

shakuntala chhangani

shakuntala chhangani (Expert)
Follow

10 November 2009 As per Revised AS 11(2003)all the exchange differences were required to be charged off or credited to P/L A/c. However, as per the limited revision of AS 11 w.e.f.31.3.2009, an option is available in case of fixed asset linked long-term foreign exchange liability. Increase or decrease in liability can either be adjusted in P/L A/c or can be adjusted in Asset A/c. Keep in mind that previously Adjustment in asset account was not allowed by Revised AS 11 (2003,therefore if you switch over to it now, it will amount to change in accounting policy and disclosure as per AS 5 will be required.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Subrahmanyam

Subrahmanyam (Querist)
Follow

16 November 2009 Thank U so much for the reply..