02-25-2010, 02:21 PM
My question may appears to be a stupid one... but i am unable to resolve the issue....
a few days ago i read it in first volume of selected opinion issued by ICAP, that
<b>It is permissible to adjust the cost of fixed assets with the sifferences arising from fluctuations in exchange rates relating to loans used for acquisition of such assets.</b>
<b>ITEM NO. 1.13 FIXED ASSETS-CAPITALIZATION OF EXCHANGE LOSS</b>
Now the above opinion was issued back in 1993, what i need to know is whether the same is still applicable or there is a revision in this concept
Further, if a company borrows a foreign currency loan for working capital requirements, can it capitalize the exchange loss as part of inventory inline with the opinion issued by ICAP mentioned above.
a few days ago i read it in first volume of selected opinion issued by ICAP, that
<b>It is permissible to adjust the cost of fixed assets with the sifferences arising from fluctuations in exchange rates relating to loans used for acquisition of such assets.</b>
<b>ITEM NO. 1.13 FIXED ASSETS-CAPITALIZATION OF EXCHANGE LOSS</b>
Now the above opinion was issued back in 1993, what i need to know is whether the same is still applicable or there is a revision in this concept
Further, if a company borrows a foreign currency loan for working capital requirements, can it capitalize the exchange loss as part of inventory inline with the opinion issued by ICAP mentioned above.
