Fixed asset purchase and exchange gian
This query is : Resolved
20 August 2013
We purchased the asset USD : 259 INR=60.19
at Time of Payment USD 259 - INR :59.00
Please say whether below mentioned treatment is correct with reference to asset cost?
Fixed Asset a/c Dr.Rs 15,589 (259usd* 60.19)
Creditors a/c Cr. 15,589 (259 *60.19)
Creditors a/c Dr .Rs 15,589 (259*60.19)
Froex gain a/c Cr RS 308
Bank a/c Cr . rs 15,281 (259*59.00)
at Time of Payment USD 259 - INR :59.00
Please say whether below mentioned treatment is correct with reference to asset cost?
Fixed Asset a/c Dr.Rs 15,589 (259usd* 60.19)
Creditors a/c Cr. 15,589 (259 *60.19)
Creditors a/c Dr .Rs 15,589 (259*60.19)
Froex gain a/c Cr RS 308
Bank a/c Cr . rs 15,281 (259*59.00)
20 August 2013
As per recent ammendments made in AS-11 by MCA:
If the asset purchased is depreciable asset then the difference in foreign exchange shall be adjusted in its cost.
If it is non depreciable asset then it should be adjusted in Foreign Currency Monetary Items Translation difference a/c and the final bal on 31.3.2014 shall be transfered to Reserves under Equities and liabilities.
This is as per the decision taken by ICAI in it recent meeting have decided.
If the asset purchased is depreciable asset then the difference in foreign exchange shall be adjusted in its cost.
If it is non depreciable asset then it should be adjusted in Foreign Currency Monetary Items Translation difference a/c and the final bal on 31.3.2014 shall be transfered to Reserves under Equities and liabilities.
This is as per the decision taken by ICAI in it recent meeting have decided.
21 August 2013
IF you have the Notification/DOC. related to above treatment then Please share it.
Thankyou,
Thankyou,
21 August 2013
Refer the following link and scroll down to page 6 on wards.
https://220.227.161.86/27495rtpfinalnov2012_1.pdf
https://220.227.161.86/27495rtpfinalnov2012_1.pdf
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