Import of fixed assets
This query is : Resolved
26 September 2011
A Pvt ltd co. have given advance for the import of fixed asset on 01/05/2010. the exchange rate on payment date was $44. total advance shown in books comes to 6500*44=Rs286000. The asset of value $6250 actually arrived & was put to use on 01/07/2010.Ex.Rate on that date was Rs/$=44.5. the accountant capitalised the Asset on 01/07/2010 at a value of 6250*44.5=278125.
Is this correct treatment as per AS. kindly reply.
Is this correct treatment as per AS. kindly reply.
29 September 2011
As per AS 11 Effect of changes in foreign Exchange rate Fixed assets should be recorded at transaction date value, so in your case it should be 44 not 44.5 no consideration of put to use.
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal
Kindly let me know whether this solution has solved your query.
Regards,
CS Sumat Singhal
13 October 2011
sir,
but fixed asset being a non monetary item should be recorded at the date of transaction. so should i take the date on which advance payment is made as the 'date of transaction'.
but fixed asset being a non monetary item should be recorded at the date of transaction. so should i take the date on which advance payment is made as the 'date of transaction'.
03 August 2023
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Should I report my US salary for January, February, March in Schedule FA?
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
