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
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...
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
CAclubindia
