Easy Office
LCI Learning

Capitalization of borrowing cost to land

This query is : Resolved 

08 July 2013 A proprietor has bought a land for construction of a factory in future.For its purchase of land,a loan is taken for which interest is paid. The land has not been put to any use and No construction has yet started on the land.
Can the interest be capitalized until the land is put to use?
Can we follow AS 11?

08 July 2013 Yes, till the land is fully constructed all int exp is to be capitalised.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries