Exchange difference

Sec. 43A is only relating to the foreign exchange rate fluctuation in respect of assets acquired from a country outside India by using foreign currency loans ( and not applicable to the indigenous assets acquired out of foreign currency loans. )

Hence, the Assesee has to bifurcate the foreign exchange fluctuation in respect of foreign currency loan used for assets acquired outside India and the indigenous assets and apply provisions of sec. 43A or AS-11(2003) accordingly.

1. Sec 43A deals with the treatment of exchange rate difference on account of purchase of assets outside India and payment for the same in Foreign currency. 
2. This section will allow the assessee to increase or decrease the value of the assets at the time of payments towards such an asset in foreign currency. On account of foreign exchange fluctuations either you could end up paying high or low compared to the time when the asset was purchased on credit or repayment of the loan for that matter. 
3. Sec 43A essentially deals with increasing the value of the asset if you end up paying high and decrease the value of the asset if you end up paying low. 
4. On the other hand AS 11 deals with treatment in Books of Accounts at the end of the period or value to be recognized at the reporting period. 
Please correct me if the above solution has an alternative view. 

As far I observed the provisions after reading of AS 11 there is no difference between these two as it is corresponding to para 46 of AS 11 but in AS 11 there is no compulsion to capitalize the amount of exchange difference arise and income tax make it as compulsion.