How to account for Fixed Assets acquired from overseas and/or paid in Foreign Currency

When acquiring fixed assets from overseas, record the cost of the asset in your functional currency using the spot exchange rate on the date of acquisition. This means converting the foreign currency amount of the purchase price to your local currency using the relevant exchange rate.

Detailed Explanation:

1. Initial Recognition:
When you purchase a fixed asset in a foreign currency, the cost must first be converted into your functional currency (the currency used to present your financial statements) using the spot exchange rate that was in effect on the date of the asset's acquisition. 

1. Functional Currency:
   Your functional currency is the currency of the primary economic environment in which your business operates, according to accounting standards.
2. Subsequent Measurement:
   * Once the asset is recorded in your functional currency, its value will not be changed due to fluctuations in the exchange rate.*
3. Depreciation will also be calculated in your functional currency.