Get 20% discount & Revise your CA subjects with online video classes – Coupon code: RSLT20


Please Wait ..

to your account


Remember Me

Forgot your password?

Sign-up now

Join and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.

Discussion > Accounts > AS >

As - 16 qualifying assets

    Post New Topic
Pages : 1

Related Files


[ Scorecard : 4990]
Posted On 20 March 2012 at 17:48 Report Abuse

Consider following case for qualifying assets :-

Plant & Machinery - Time to complete installation 4 months.

DG Set - 1 month

Transformer - 1 month

Building - more than 1 year.


Whether all the above assets are qualifying assets ?

while identifying Qualifying assets whether all the assets in a group is to be seen separately or they are to be seen as a whole group?

In above case  DG & transformer are plant & machinery and so whether they are qualifying assets or not.


whether we consider total number of  assets as one group ?

Building has taken more than 1 year, so it is a qualifying asset. tell about others.




Online classes for CA CS CMA

Share on

Giridhar S Karandikar
Team Lead

[ Scorecard : 2923]
Posted On 20 March 2012 at 19:05

As per AS-16, an asset whihc takes a substantial period of time to gets itself ready for it's intended use is considered as an qualifying asset.

In your question all the assets other than Building do not meet the recongnition criteria to be considered as an qualifying asset as per AS-16, so they cant be considered as qualying asset

All the assets are to be considered seperately for the purpose of Borrowing Costs, as the AS states that 'A qualfying Asset is eligible for capitalization'.  however this would depend on the facts & circumstances of each case whether the assets taken toghether are to be considered as an qualying asset, if they can be used in conjunction.

There are 1 Replies to this message

Related Threads

Post your reply for As - 16 qualifying assets

Your are not logged in . Please login to post replies

Click here to login

Not a member yet ?? Click here to signup



  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.

Forum Home | Forum Portal | Member Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads This Month | Forum Stats | Unreplied Threads

back to the top