As-11
This query is : Resolved
03 July 2012
As per AS-11 change in foreign exchange in long-term monetry assets (fixed assets, long term liabilities) in cost of fixed assets at the year end.
My ques is this that whether dep has to provide on that addition (due to adding/deduction for exchange difference)
PLZ its imp.
My ques is this that whether dep has to provide on that addition (due to adding/deduction for exchange difference)
PLZ its imp.
03 July 2012
Depreciation is calculated prospectively for amortising in the residual life of the asset.
If capitalizations are done on quarterly basis then :
June 30 Fx capitalized – 100, Depreciation Nil
September 30 Fx Capitlised – 10 ( July to Sept) Depreciation for three months for Fx capitalized on June 30. For Capitalisation on Sept 30, Dep is Nil.
December 31 Fx Capitalised – (50) (Oct to Dec) Depreciation for six months for Fx capitalized on June 30 and 3 months for fx capitalized on Sept 30.. For Capitalisation on Dec 31, Dep is Nil.
This goes on…
Point to note: The depreciation rate used for Fx will have to be higher than Schedule XIV so that it is depreciated in the remaining useful life of the asset.
If capitalizations are done on quarterly basis then :
June 30 Fx capitalized – 100, Depreciation Nil
September 30 Fx Capitlised – 10 ( July to Sept) Depreciation for three months for Fx capitalized on June 30. For Capitalisation on Sept 30, Dep is Nil.
December 31 Fx Capitalised – (50) (Oct to Dec) Depreciation for six months for Fx capitalized on June 30 and 3 months for fx capitalized on Sept 30.. For Capitalisation on Dec 31, Dep is Nil.
This goes on…
Point to note: The depreciation rate used for Fx will have to be higher than Schedule XIV so that it is depreciated in the remaining useful life of the asset.
Message likes :
1 times
07 July 2012
thanx sir for ur answer
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG FOR GOLD ETFs
- Loan by Partnership Firm
- E way bill for tractors
- Plot of land. Cost of Acquisition
- Last year TDS Claim
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
