Mach purchased in foreign currency

AS 597 views 1 replies

Hello friends

one co.has imported machinery and payment is to b made in now foreign currency

now exchange difference arising due to difference in dates of purchase and payment

to be capitalised or charged to revenue.

i am very much confused about amendements made in  AS11 in past one year.

plz reply as per current amendment applicable as mach.is imported in 2010-11

thnx

Replies (1)

charge it to revenue.. amendment in AS11 is an option given to amortise due to heavy loss in forex transactions.. 

In your case, charge it to p&L..


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