what is accounting of exchange gain loss on import assets it's capitalised or not ?
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Quick Summary
This discussion clarifies the accounting treatment of exchange gains and losses on imported capital assets. Generally, if the asset's price increases, the difference is expensed as a loss, while a decrease is treated as a gain. For capital assets, these gains or losses might be capitalised or transferred to a capital reserve. The thread also touches on closing open exchange differences in outstanding creditor ledgers and how foreign exchange gains/losses impact equity or other comprehensive income (OCI).
Fx gain or loss is directly taken to euity or oci depending upon the recycling, first, subsequent treatments and balances in revaluation reserves. It cant be a liability. Make a rectification and transfer it off.