02 August 2013
Please clarify that, whether the loss or gain from foreign exchange fluctuation is to be capitalized into the value of machinery or not?
06 August 2013
Loss has to be taken to P&L for books and should be capitalised for Income tax purpose
If you have borrowed a loan in foreign currency and there is exchange gain / loss in the loan then you can capitalised it to the fixed asset which was purchased out of that loan subject to certain conditions
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