AS

Hello everyone,

Have been doing the accounting standards from Rawat, it says in the preface that according to AS11 asset linked exchange differences should be written off / credited in the profit and loss account and should not be capitalised.

But AS 6 while defining the purchase price of depreciable asset speaks of increase/decrease related to foreign exchange fluctuations in outstanding liability due tp purchase of fixed asset. It appears that it provides for adjustment of these foreign exchange fluctuation in the asset account

thank you