Capital Work in Progress

Dear Members,

I had an argument with my Auditors saying that Capital Work in Progress is only when some capital expenditure is incurred for some unfinished capital work, like a room under construction or a machinery under installation.

If i have issued an advance for a fridge or TV then this can not be termed as capital work in Progress.

Am I Right - Which accounting standard / Guidence note would throw proper light on the above.


Hi thomas, it is ok with your argument. Though advance paid to the capital works will be shown as capital advances in your GLs/TB.

But when it comes to Schedule VI disclosure, capital work in progress inlcudes capital advances.



V R Nanda

Company Secretary and Compliance Officer

Agree with Mr. Nanda

Senior Executives

I doubt, kindly clarify


Agrred with NANDA



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