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Foreign currency was high on payment date, was low on recognition date of fixed asset. So difference btw paid and recognized amount is foreign exchange loss. How it should be treated in accordance with IFRS?

Example (local currency-AZN, foreign currency EURO)
Price of fixed asset - 100 000 EURO

01.02.14 Advance payment 100 000 EURO (ex rate 1.05, AZN equivalent 105 000 AZN)
02.05.14 Receipt and Recognition of Fixed assets (ex rate 0.9, equiv 90 000 AZN)
Advance payment remaining open 15 000 AZN=foreign exchange loss.
in IAS 16 - Property, Plant and Equipment by

1 Answer

0 votes
Advance payment remaining should be recorded as an exchange loss.
by Level 5 Member (25.6k points)