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effect of foreign currency

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Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2010 Hiiiiiiii

what will be the accounting of exchange difference arising on loan taken in foreign currency for purchase of an assets.
Diff. arising due to revaluation of foreign borrowing will be capitalised with assets or expensed in profit or loss account.

shakuntala chhangani

shakuntala chhangani (Expert)
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26 April 2010 vide notification dated 31.3.2009 option is available; either u can capitalise it or can expense it
Regards, CA Shakuntala Chhangani

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 April 2010 Pl see companies (Accounting Standards) Amendment Rules,2009 in the following link.
https://www.caclubindia.com/notice_circulars/notice_list_detail.asp?notice_id=1918

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