When payment is done towards import of fixed assets, Forex loss arising on payment is to capitalised to Fixed Assets or expensed out? as per AS 11?
2 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 11 September 2012
It shud be capitalized to the asset A/c by increasing/decreasing the value of the asset
sandeep
(student)
(188 Points)
Replied 11 September 2012
forex loss or gain during the construction period of the qualfying assets should be capitalised .as per as 16 moreover if the amount is higher than the amount shuld be capitalised. applying as 11.
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