I am having doubt regarding Capitalisation of exchange differance arising from exchange rates in relation to increased liability for the acquisition of the Asset.
1. Whether it is to be charges to pandl or capitalised.(Sch VI vs AS11)
2. In case capitalised whether Depn on the entire amt
3. Impact of the Notification that was released.
As per AS-11, Exchange gain or loss should be charged or credited to profit & loss account. A note regarding future obligation should be given in the notes to accounts annexed to the balance sheet.
regards
ratan
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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