06 May 2013
If a company has received mining rights and has not started the operations yet. So in that case how should the expenses incurred before the commencement of operations be treated? Should it be shown as expense or under WIP?
07 May 2013
If the mine is not in the position to be exploited commercialy and the company incurs some mine development costs, it should be part of CWIP. ALl other principles of direct and indirect expenses for capitalisation will apply.
CAclubindia
