As 16- as 11 - as 10

S .Ghosh (audit assistant) (258 Points)

17 June 2014  

Dear

Members ... Please go through the following ( hyphothetical) case .

A Plant purchased  from USA for $1000 ( exchange rate Rs 50 /$) on 1.2.14   by making a foreign currency loan at the interset rate of 5% p.a..On the closing day 31.03.2014 the ex rate was 51 and on the payment date 31.4.2014 the ex rate was 53. The loan could have been made in local currency at the rate of 10 % p.a..

 questions are

1. What will be the impact on 1.2 , 31.03, 31.4  as per the AS11...how entries to be passed?

2.the difference between 1.2  to 31.3  .and  31.3  to 31.4 where it will be adjusted?

3. will there be any change in historical price

4. effect of AS 16 ..borrowing cost ?? and what amount will go to p/l ? 

5.oveall synchronization of AS 16 ,11 and 10 ??

Thanks