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AS 11 MCA

Accountancy

For liability designated as long term foreign currency monetary item can we have to transfer the exchange difference to FCMIT ?

Alan Geevarghese

CA Inter

★ 0

23-Jun-20 20:27

348

Answers (1)

If it relates to the acquisition of a depreciable capital asset,then the exchange difference can be added to or deducted from the cost of the asset and shall be depreciated over the balance life of the asset, and in all other cases, it can be accumulated in a â??Foreign Currency Monetary Item Translation Difference Accountâ??