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A.raza

09-16-2010, 11:46 PM
Asalamu alaikum

Please guide me whether we can capitaliz exchange loss arised in purchashing an item of fixed assets. The company is required to follow fifth schedule for preparation of its financial statements.

noman

09-18-2010, 03:22 AM
no.....only exchange loss on settlement/payment of foreign currency interest repayment on foreign loan can be capitalised alongwith the borrowing cost only in case of qualifying asset as per ias-23

Ammar

10-02-2010, 02:34 PM
you can treat exchage loss arising from property plan equipment
according IAS 16
Accountancy Forum > The Profession > Accounting and Audit > Capitalization of exchange loss