Foreign exchange loss on fixed assets
This query is : Resolved
25 June 2014
Sir,
Fixed assets has been imported from outside India on loan from an Indian bank at an agreed price.
Although on completion of loan due to fluctuation in currency rate Indian bank has to paid more to foreign party.
Now the Indian bank has asked us for the excess payment which he has paid to foreign party.
So how the excess payment paid by us to bank to be accounted in the books?
Should the value of original asset be increased or what to be done...?
Kindly direct how to account.
Fixed assets has been imported from outside India on loan from an Indian bank at an agreed price.
Although on completion of loan due to fluctuation in currency rate Indian bank has to paid more to foreign party.
Now the Indian bank has asked us for the excess payment which he has paid to foreign party.
So how the excess payment paid by us to bank to be accounted in the books?
Should the value of original asset be increased or what to be done...?
Kindly direct how to account.
25 June 2014
Loss of foreign exchange will capitalized in particular assets.
25 June 2014
thank you sir
Would it make any difference if loss is spread in 3 years.
Would it make any difference if loss is spread in 3 years.
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