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Capitalisation of Exchange rate differences

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(Querist)
01 August 2008 hi
i want to know whether the exchange rate differnce between the date of purchase of a fixed asset and the balance sheet date can be adjusted in the book value of the fixed asset. can the Depreciation on the additional amount(If it is profit) can be charged to P&L account? The purchase cost is not paid till the close of the year.What is the correct Entry to be made as per AS 11
Kindly guide me.
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
01 August 2008 How does the difference arise after the date of purchase?
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Angayarkanni Murugesan

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Angayarkanni Murugesan (Querist)
04 August 2008 Sir,
the fixed asset is imported in December 2007 and is capitalised at the exchange rate prevailing on the date of bill of entry. The purchase consideration is payable only after 180 days. when the balance sheet is prepared, the current liabilities and the fixed assets have been shown at the rate as on 31.03.08 and the difference is adjusted to Fixed assets and taken to P&L account. Depreciation also adjusted accordingly. Is this entry correct?
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Taranjit Singh

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Taranjit Singh (Expert)
05 October 2009 Hello, is this an old query still pending? Plz send me a Pm if yes....
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Taranjit Singh

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Taranjit Singh (Expert)
05 October 2009 Hello, is this an old query still pending? Plz send me a Pm if yes....
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Angayarkanni Murugesan

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Angayarkanni Murugesan (Querist)
05 October 2009 Its closed
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