Hello Sir/Mam,
For the purchase of an Asset, advance(in Foreign Currency) has been paid in the FY 2007-08. The asset has been delivered on 10-05-08. At wat Exchange rate the asset has to be capitalised, wat is the treatment of exchange difference.
Thxs in advance
The asset will be capitalised @ applicable on the day of receipt of Invoice or @ on which the asset is cleared from Custom authority or rate taken by them is generally preferred.
the exch diff will be charged to P&L arising out of revaluation of Liability related to FA.
Regards
Hitesh
what about ASI 11 which states about foreign exchange flucuation on capitalization of assets......
Chirag N Shah & Associates
Mumbai
CA Inter
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