**Reference to Accounting Standard (AS) - 10 - Accounting for fixed assets**
The cost of an item of fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase
**Reference to Accounting Standard (AS) - 11 - The Effects of Changes in Foreign Exchange Rates**
A foreign currency transaction is a transaction which is denominated in or requires settlement in a foreign currency, including transactions arising when an enterprise acquires or disposes of assets, or incurs or settles liabilities, denominated in a foreign currency.
The following options are available to recognise the date of transaction for sale
• Date of invoice
• Date of bill of lading
• Date of shipment
• Date on MRN etc.
Where the payment is made in advance there is no question of endorsement of documents by the banker and date of transaction again is to be decided on the basis of intention of parties.
Since, In our case, since 100% advance payment is made for purchase of capital goods, and there is no future liability to be settled, therefore, the transaction is complete on the date of transaction itself. Therefore, no exchange loss is to be recognised in books.