Prepayments for Purchase of Property, Plant and Equipment

Zálohy na pořízení dlouhodobého majetku v cizí měně

Libor Vašek

Český finanční a účetní časopis, 2007, vol. 2007, issue 3, 21-26

Abstract: The article provides an illustrative example whose aim is to show an accounting treatment for a purchase of property, plant and equipment when the purchase price is denominated in foreign currency and prepayments are provided by entity. The following question arises in connection with that transaction: Shall be the prepayments denominated in foreign currency translated at balance sheet date using closing rate or not? The solution results from IAS 21 where the requirement to translate non-monetary items (including property, plant and equipment) using historical rate is included. This policy leads to different results than Czech accounting standards.

Keywords: Foreign currency; Property; plant and equipment; International Financial Reporting Standards; Czech Accounting Standards; Cizí měna; Dlouhodobý majetek; Mezinárodní standardy účetního výkaznictví; České účetní standardy (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2007
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DOI: 10.18267/j.cfuc.229

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