Capital Work in Progress


Finance Controller

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.


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auditor

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.

 

Regards,

V R Nanda

 
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Company Secretary and Compliance Officer

Agree with Mr. Nanda

 
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Senior Executives

I doubt, kindly clarify

 
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CA FINAL+LLB + DISA

Agrred with NANDA

 
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