https://www.taxtmi.com/forum/issue?id=1482 The issue is whether foreign exchange differences on foreign-currency borrowings used to acquire fixed assets are to be capitalised into the asset cost and depreciated or charged to profit and loss. One commentator requests clarification on the term "unrealised loans," suggesting implications if a loan is written off or only sanctioned but unused. Another applies AS 11: exchange differences related to loans taken in foreign currency for asset purchase should be added to the fixed asset cost and depreciation charged on the total amount; if funds were not received or applied, no exchange difference for capitalisation arises. en-us Thu, 10 Sep 2009 12:37:16 +0530 Thu, 23 Jan 2025 15:58:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1482 The issue is whether foreign exchange differences on foreign-currency borrowings used to acquire fixed assets are to be capitalised into the asset cost and depreciated or charged to profit and loss. One commentator requests clarification on the term "unrealised loans," suggesting implications if a loan is written off or only sanctioned but unused. Another applies AS 11: exchange differences related to loans taken in foreign currency for asset purchase should be added to the fixed asset cost and depreciation charged on the total amount; if funds were not received or applied, no exchange difference for capitalisation arises. Discussion-Forum Income Tax Thu, 10 Sep 2009 12:37:16 +0530 https://www.taxtmi.com/forum/issue?id=1482