AS 11

Dear All,

Can we capitalized the exchange gain/loss occured on fixed assets.

In one case, in purchase of FA the payment was made in advance and the assets was received afterwards.Thus resulting in exchange gain/loss.Is it proper to capitalised such gain / loss?

Please help

Replies (6)

As far as my knowledge is concerned, u can't...

 

But let others reply too

Exchange Gain/loss cannot be capitalised.

How you are coming at an exchange gain or loss can u please explain...

The exchange loss or gain on long term depriciable fixed asset can be capitalised.

Exchange gain or loss should not be capitalised. However, if you are repaying a foreign loan in instalments, which has been taken for financing a qualifying asset, the changes in exchange rate of such a loan amount should be adjusted to the cost value of such qualifying asset.

Thanks for the reply

As far as I know that, we can capitalsed pre-capitalisation cost.

Exchange gain/loss being one of them, as the full payment for procurring the asset have been made in advance thus being pre-capitalisation cost.

So what do y'all think in this regards

 

https://www.icai.org/resource_file/15726mca193_and_194.pdf

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