As per AS-11 in case of non integral subsidiary while converting deprecition into indian currency what rate should be taken as it is both balance sheet and P&L item ? if i take depreciation on closing rate then my profit wont be at average rate and if i take it at average rate my fixed assets wont be at closing rate? should i take it in average rate in P&L and at closing rate in Balance sheet adjusting the difference in Exchange rate variation A/c ??
Menu
Foreign subsidiry
Replies (1)
Depreciation will be solely provided at the rate adopted on the historical cost of the asset(i.e. the exchange rate on the day of the transaction)....since dep is charged on that cost no effect of closing or average rates would be posed on it...
(Either in the p&l or in the bal sheet)
Recent Threads
- HOW TO ADD BANK ACCOUNT FOR A NON RESIDENT
- Gift to son for purchasing Commercial space
- Getting error in Date of filing of form 10IEA for
- GST rate on delivery charges
- Gratuity on resignation
- ITR-3 and ITR-4 Options Missing for Updated Return
- NRO BANK INTEREST CERT. DATA AND VICE VERSA WITH
- What is the Correct GST Rate For Renewable Energy
- Schedule 112A-uploading with CSV file issues
- Audit opinion
Related Threads
CAclubindia
