As-11

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Venkatesh S (Querist)
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21 February 2014 We Purchased Assets for Branch in USA when $ rate was Rs 40 But, Now $ rate was Rs 60/- So, when we are incorporating Translation Loss with HO A/c It is affecting HO profit & Loss.
How to come over of this pls refer supported by case Laws ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 February 2014 is it depreicable asset or non depreciable?

Venkatesh S

Venkatesh S (Querist)
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21 February 2014 Books and Periodicals, Computer Equipment, Computer Software, Computer Software Licence, Diesel Generator and UPS, Furniture and Fixtures, Office Equipment

All are Depreciable Asset

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 February 2014 then as aper recent ammendments made to AS 11 such loss on foriegn exchange for depr asset shall be added in cost of asset..

refer para 46A as ammemded by MCA.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 February 2014 46A in AS 11......as ammended by MCA

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 February 2014 46A in AS 11......as ammended by MCA

Venkatesh S

Venkatesh S (Querist)
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21 February 2014 I Think that Amendment was Applicable for the INTEREST on Borrowed Fund can be capitalise But, in our case it is TRANSLATION LOSS. Right?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 February 2014 no its on loss arising on exhange difference..pls check it again...

Venkatesh S

Venkatesh S (Querist)
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21 February 2014 PUBLISHED IN CACLUBINDIA
Pls Look at the word "Foreign Currency Loans" in below paragraphs.

as-11 says that any exchange difference (on long term as well as short term items) should be recognised in profit and loss account.

but para 46 was introduced on 31.03.2009 and was applicable with retrospective effect from financial year 01/04/2007. para 46 was added by NACAS allowing companies to capitalise the exchange difference on long term foreign currency loans.

para 46 had shelf life upto 31.03.2011. however, then it was further extended to 31.3.2012.

but on 31.03.2012 para 46a was added which allowed the companies to capitalise the exchage difference on long term foreign currency loans till 2020. this option can be exercised only once. in other words, once a company has decided either to recognise the difference in p and l or to capitalise it, then it cannot change till 2020.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 February 2014 then book loss in p & l a/c wat else u can do....

Venkatesh S

Venkatesh S (Querist)
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21 February 2014 i think para 46a is not applicable in case of Amount due to Creditor (not to the Bank)
Right?
If No Pls refer any SC case Laws.

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