Fixed assets

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seeta (Querist)
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19 September 2011 What is treatment for Purchase of Fixed assets in foreign exchange in following situation

1.During the FY
2.On 31/3/2011

urgent

VISHRUT

VISHRUT (Expert)
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19 September 2011 Fixed asset will be stated at the value of purchase and if any payment is outstanding towards value of asset than Foreign Exchange Fluctuation effect will be require to given.

seeta

seeta (Querist)
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19 September 2011 what effect is give in P&L And Balance sheet

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 well asset will be recorded at the price in Indian currency what is paid for the same

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 if the price of the forighn asset is paid in cash then no question arises for the adjustment as on 31 March

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 the adjustment is required to be done only when the foreign asset is purchased on credit only

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 in case the asset is purchased on credit in foreign currency then in such case, the closing balance of the liability is required to be valued at the currency rate as on 31 march ans the difference in the exchange rate is reqd to be charged as exchange loss/profit and to be transferred to p/l A/c

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 as per latest as -11 provions, noo revision is reqd to made in the carrying cost of the asset

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