Ravithosh....the date of invoice has no relevance here as, on that date the asset is just desptached...it reaches the premises only in the next year.....we cannot book an asset just because the supplier invoiced it...as it does not satisfy the criteria...of Fixed Asset..neither do the supplier invoice date is relevant in our books....

Dear Jishnu Surendran,

I have already mentioned in my previous reply that In Financial Year 2012-13 you have received Bill of Entry / Document for Payment of Customs Duty and also Both the Pumps.

For Payment of Customs duty consider BOE and Total Invoice value raised by supplier with exchange rate in BOE should be considered for valuation/ Capitalization. Bill of Entry is Base Document. 

Other Import expenses (OTHER THEN refundable) related to that import consignment should also be capitalized. Balance if any adjusted against Exchange rate difference. 

 

Oh yes i was completely wrong on that issue, sorry for the mistake.

Sorry Shilpa....but an advance against a fixed asset is not a monetary item.....

Clarify

 "an advance against a fixed asset is not a monetary item.....

well...Shilpa

a monetary item as per AS 11 is an item that is payable or receivable in fixed or determinable amounts of money....and also in this case...the amount paid is not an advance although it is accounted like that......it is settlement of liability.....the only thing to look upon now....is 'on whom the risks associated with the transit lies'.....I mean who is the party affected if.....a loss happens....the agreement doesn't say anything on this...now I'm checking the insurance papers.....do you think I should refer the WTO's trade law to figure this out....?

or am I getting too involved in this...checking out the things that are not needed.....?

have you met up with such a situation ?

suggest something......waiting for the expert's reply....but no word till now....

and also guys...please check out my other query regarding journalising borrowing costs......

I have considered another case.....

considering the full settlement of price of one asset as an express admission...of the risks involved in transit...thus accounting the asset as Capital Asset in Transit...in the year of payment....

Is this right ?

Dear Jishnu Surendra,

Refer Following Link

/experts/as-11-369810.asp#.UWT3bdJTAbB

Thank you Shilpa....

but the experts say what I've told you....the advance is not a monetary item.....and also the same is not an advance taking into consideration the facts of the case.......I think I should look into the details of the agreement in terms of risk in transit.....