Accounting for foreign exchange loss in case of fixed assets
This query is : Open
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 ???
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
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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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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