Providing Amendments of AS 11
This query is : Resolved
15 February 2010
Can anyone please provide me the new provisions of AS 11? What is the procedure to apply the same on the companies???
15 February 2010
There is no change in AS-11. There is change in capitalisation of foreign exchange difference on non-monetary items according to govt. notification.
As per AS-11, the foreign exchange difference on non-monetary item cannot be capitalised and need to write off in the profit and loss. However, after the notification of govt., it can be capitalised on long term non-monetary assets but need to be amortised by 2011. And after that the companies need to prepare their accounts according to IFRS so automatically it would be write off.
Even previously for non-companies, AS are not mandatorily so they can capitalise difference in foreign exchange even for non-monetary assets.
But after notification, the companies are also eligible for capitalisation of foreign exchange difference on non-monetary assets
As per AS-11, the foreign exchange difference on non-monetary item cannot be capitalised and need to write off in the profit and loss. However, after the notification of govt., it can be capitalised on long term non-monetary assets but need to be amortised by 2011. And after that the companies need to prepare their accounts according to IFRS so automatically it would be write off.
Even previously for non-companies, AS are not mandatorily so they can capitalise difference in foreign exchange even for non-monetary assets.
But after notification, the companies are also eligible for capitalisation of foreign exchange difference on non-monetary assets
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15 February 2010
AS 11 has been amendded by inserting paragraph 46 vide Companies accounting standards amendment rules,2009. Some tips can be read in the following link:-
https://www.icai.org/resource_file/16132announ1805a.pdf
https://www.icai.org/resource_file/16132announ1805a.pdf
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