Mach purchased in foreign currency

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539 Points Posted on 11 January 2011

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)

Audit Assistant

713 Points Posted on 12 January 2011

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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