foreign exchange fluctuation

This query is : Resolved

Muthu Aravind (Querist)
Follow

25 June 2008 PLZ guide me........... exchange differences arising on repayment of liabilities incurred for the purpose of acquiring fixed assets, which are carried in terms of historical cost, should be adjusted in the carrying amount of the respective fixed assets or not ?

Shekar

Shekar (Expert)
Follow

25 June 2008 It should be capitalised..

Sakshi Gumbar

Sakshi Gumbar (Expert)
Follow

25 June 2008 No. it should not be capitalized as per AS 11. The amount of fixed assets are to be converted at the rate on the date of purchase and any ED arising thereafter on payment to be taken to P&L a/c. If the payment is made in the susequent FY than the creditors balance should be converted at the rate on the last date of the FY and difference to be Taken to P&L.

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
Follow

25 June 2008 As per AS 11.. the gain or loss arising due to flectuation in forex rates can be EXPENSED..i mean it should be taken to P/L

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Fredrick Samraj

CA Aakarsh Jain

Jaipal Singh

prakash takane

CA.K.RAMAKRISHNA. PRABHU

Subscribe Now

foreign exchange fluctuation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA