I am having doubt regarding Capitalisation of exchange differance arising from exchange rates in relation to increased liability for the acquisition of the Asset.
1. Whether it is to be charges to pandl or capitalised.(Sch VI vs AS11)
2. In case capitalised whether Depn on the entire amt
3. Impact of the Notification that was released.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 23 September 2009
As per AS-11, Exchange gain or loss should be charged or credited to profit & loss account. A note regarding future obligation should be given in the notes to accounts annexed to the balance sheet.
regards
ratan
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
CAclubindia
