alleryStart learning →Under the long-term item option, differences on a depreciable asset are
AAdded to or deducted from cost
BCharged to profit at once
CCredited to share capital
DShown as contingent liability
Answer & Solution
Correct answer: A. Added to or deducted from cost
Differences relating to a depreciable capital asset are added to or deducted from its cost and depreciated over its balance life.
Keep practising AS 11 Foreign Exchange
Browse all AS 11 Foreign Exchange questions for CA Inter, or explore more Accounting topics.
Related questions
Sales prices set mainly by local competition or regulation point to aAn active local sales market for an operation's products suggests it isA foreign currency item is a long-term monetary item if its term at origination is at leasParagraph 46A covers accounting periods commencing on or afterThe paragraph 46 option for long-term monetary items applies from periods starting on or aBesides transactions and foreign operations, AS 11 coversPresentation of foreign currency cash flows in a cash flow statement is covered byAS 11 does not cover restating statements into another currency for