CA Loan Bajaj Finserv
CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

CAPITALIZATION OF FOREIGN FLUCTUATION DIFFERENCE

This query is : Resolved 

Assume in F.Y 2019-20, If A Party paid USD 1000@70/- in term of Indian Rs. 70,000 and later on he received the assets @75/- i.e.75,000/-. Now the Difference should be capitalized.
But They did not capitalized in 2019-20. Instead of it the difference amount of Rs. 5,000 has been capitalized in F.Y 2020-21.
Now how can i Handle this. What will be exact treatment of this.

Capitalisation should be done based exchange rate prevailing on the transaction date. Transaction date is supply date. So capitalisation of 5000 in next year is okay.

Sir Actually They Paid in 2019-20 & Bill Booked is also in 2019-20. The Asset received on 2019-20. Only Fluctuation booked in 2020-21. Is it correct?

Yes, it's correct, as the fluctuation related to transaction date.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


Similar Resolved Queries

loading





Trending Tags