As-16 borrowing cost
This query is : Resolved
23 May 2014
when asset is treated as qualifying?
in some questions advance to supplier for machine is treated as qualifying n in some it is not!
whts the concept!???
23 May 2014
Dear Prakhar,
As per AS 16, Qualifying Assets refers to "those assets which takes SUBSTANTIAL PERIOD of time for its INTENDED USE or SALE".
Also, it clarifies that Substantial Period may be regarded as a period exceeding 12 months.
So, the answer depends upon your assumption whether the asset in the question takes SUBSTANTIAL period for its intended use of sale.
I hope it is clear.
As per AS 16, Qualifying Assets refers to "those assets which takes SUBSTANTIAL PERIOD of time for its INTENDED USE or SALE".
Also, it clarifies that Substantial Period may be regarded as a period exceeding 12 months.
So, the answer depends upon your assumption whether the asset in the question takes SUBSTANTIAL period for its intended use of sale.
I hope it is clear.
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