As 16- as 11 - as 10

Sharing my working

But in the given case it is not long term Foreign Currency loan. So P. 46 not applicable

Int at the rate on F.C= 51000*5/100*59/365= 412

As per Indian rate= 51000*10/100*59/365= 824

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Diff                                      =                           412

Exchange Diff.                    =                           1000

Capitalisation should be made upto======    412 only

balance should be trns....to P&L a/c====       588

How to decide it is long trem liability as per para 16 .there is another point in case of depreciable assest we can adjust the difference in cost of assest but how ,,if we can do so then the historical cost will change ??  what will be the treatment of non depciable assests?? furthert there is a option available upto 2020 that thr fluctuation instead of charging in p/l we can create reserve ? 

mometary ...non monetary ,, depreciable , non deprecialble  ...its making CONFUSION

As you have PM ed me the assumptions. I have tried to answer. You can also go through CA Final module Chp. 1 for Borrowing Cost example.

I would suggest you to study As 11 & AS 16 first separately & then go for combined reading

module sum attached for as 16