Change in assets due to exchange rate difference

Mr Pucca

Assets Value will be same as on amount paid on date of purchase but liability has to be reported at closing rate. Difference in increase or decrease in loan liability has to be credited/debited repectively to P&L A/c. 

there are different ways of treating this one way is that you can increase the loan amount by 3. while settling the loan if you have to pay more or less , same would be book in forex exchange gain or loss.

but while calculating gain or loss in exchange you have to take the revised loan amount.

If I am not wrong the question here is about two thing one is the asset bought in foreign currency and the liability in foreign currency.

You will have to adjust for the amount payable as said in the earlier posts. 

But in case of the asset bought through it the value will not change;

Hi Praveen,

Even in our post we quoted same. 

thanks for your answers guys but here i havent yet paid the loan, its in the books unpaid so i cannot adjust the gain or loss in p&l isnt it ?