10 November 2017
if we had taken loan from other country for purchase of fixed asset and foreign exchange gain is arised so what s treatment of this gain whether it will be added or reduce from cost of asset??? with journal entry???
11 November 2017
As per the accounting standard, exchange difference is to be added / deducted from the value of asset.
For the purpose of Income tax:- + if the asset is also acquired abroad, treat as said above. + if the asset is domestically acquired, gain or loss should be recognised as revenue.
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