Capitalization of exchange loss

[A.raza]

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]

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]

you can treat exchage loss arising from property plan equipment
according IAS 16