Suppose a firm has borrowed loan for construction of asset on 1.4.07 & if the construction is completed in 30.09.2007 then how much amount of interest should be capitalised & how much should be treated as revenue expenses?
Gautam Patel (CA and CWA) (146 Points)
10 September 2008Suppose a firm has borrowed loan for construction of asset on 1.4.07 & if the construction is completed in 30.09.2007 then how much amount of interest should be capitalised & how much should be treated as revenue expenses?
Jitender
(Chartered Accountant)
(8724 Points)
Replied 10 September 2008
intt from the period when development has started till completion will be capitalized.
CAclubindia
