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Capex Financing

14 February 2009 2,490 views One Comment

Dear Experts,

If an asset is purchased from a supplier for which payment is to be made in 3 years on monthly instalments including cost + finance chg. Can we show assets and Capex loan in B/S and depreciation on assets can be charged.

Hemant

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One Comment »

  • admin (author) said:

    Message from an IFRSLIST member

    The loan and the asset will be shown in the balance sheet

    You will have to account for the asset at the present value and book the interest paid every month to P&L and reducing the loan. Basically account for the transaction as if a finance lease.

    Regards

    # 15 February 2009 at 11:19 am

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