pavan (Finance Manager) (41 Points)
22 December 2008Hello 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
Hitesh Kothari
(Article)
(144 Points)
Replied 22 December 2008
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
Rahul Seksaria
(C.A (Final) & C.S (Inter))
(54 Points)
Replied 22 December 2008
what about ASI 11 which states about foreign exchange flucuation on capitalization of assets......
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