Accounting for foreign exchange loss in case of fixed assets

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Vineet Taral (Querist)
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02 September 2013 Fixed assets(Machinary)imported in 11-12, which is booked at bill amount, there after in 12-13 currency rate increase and paid excess amount to party, what is the treatment of exchang loss ?? whether debit to profit & loss account or capitalised to the machinary account ???

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 September 2013 As per recent ammendments made by MCA for treatment on the said matter PARA 11 of AS-11 dealswith this issueasfollows.

For depreciable assets such foreign exchange diff is to be adjusted in P&L a/c.

for non depreciable asset is to be adjuested in seperate a/c called Foriegn Currency Monetary Translation Difference A/c

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Vineet Taral

Vineet Taral (Querist)
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02 September 2013 thanx sir, but what is the effect under section 43A under income tax act ?? is it allowable in income tax act ??

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