I have some past year question in Practice Manual and Scanner on AS11 which I think has not been updated.
Para 46 and 46A has been inserted in December 2011 to AS 11, so tell me solution of following problems based on amendments.
According to me
Solution:
1. A ltd --> it is a company
2. Foreign Currency Monetory Item --> Liablity + Fixed Asset + Payable in Foreign Currecncy
3. 1.1.2010 to 31.12.2010 --> Long Term Forein Currency Monetory Item
4. Loan taken to Finance purchase of Fixed Asset --> relating to asset
So, Exchange Difference should be capitalised.
But as per Practice Manual Exhange Difference should be transferred to Profit and Loss A/c.
CAclubindia
