As 16
This query is : Resolved
Ankur gupta
(Querist)
25 December 2014
if an asset is purchased for the purpose of construction of building
and building takes substantial period of tym for completion. then such asset(purchased) shall also regarded as qualifying asset....and borrowing cost in respect of such asset should be capitalized ....????
and why working capital is not treated as qualifying asset ....???
and as inventory that takes substantial period of tym regarded as qualifying asset..
inventory is also part of working capital
plz sir clear my doubts....
m totally confused..
CA R SEETHARAMAN
(Expert)
25 December 2014
Working capital as such cannot be treated as qualifying asset. Only it's components like inventory has to be separately considered as qualifying asset.
Rupesh Jain
(Expert)
25 December 2014
YOU HAVE TO CAPITALIZED THE INTT IN THE BUILDING. AS-16 REF THE PART OF AS-10 (FIXED ASSETS.) ITS NOT FOR THE INVENTORY.
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