Can we capitalise forex gain or loss for settlement of accounts?

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Hi,

I would like to check if capitalisation of forex gain or loss for settlement of accounts is allowed under the accounting standards?

Thanks
 

Steve-LevelUp

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I do not believe so. I have never seen exchange gains/losses capitalized in this fashion. It is always expensed.
 

Fidget

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It's not generally allowed as far as I know either.

The only instance I can think of it possibly happening is where the account being settled involves capitalised borrowing costs. Fluctuations in exchange rates (this is IFRS) can be adjustments to the capitalised amounts. I'm not au-fait with the practical application of that, just aware of it under IAS 23.
 
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