AS 16 on WIP
This query is : Open
11 March 2011
Sir
A Co. has taken a Term Loan for Constructing a Building. The borrowing cost is being incurred from Jan 2011 at the rate of let us say 50000 per month. Again assuming that the firm is not going to put the asset in use till the end of Accounting year ended 31.03.2011. So plz tell me wat to do in this regard as per AS 16 Borrowing Costs. Also, If there is no requirement to Capitalize the Int. cost, then wat would be the Journal Entry for Int. Cost incurred ?
A Co. has taken a Term Loan for Constructing a Building. The borrowing cost is being incurred from Jan 2011 at the rate of let us say 50000 per month. Again assuming that the firm is not going to put the asset in use till the end of Accounting year ended 31.03.2011. So plz tell me wat to do in this regard as per AS 16 Borrowing Costs. Also, If there is no requirement to Capitalize the Int. cost, then wat would be the Journal Entry for Int. Cost incurred ?
11 March 2011
capitalisation of borrowing cost is up to the qualifying assets is ready to use or ready to sale.
we are not consider whether assets put to use or not.
we are not consider whether assets put to use or not.
Message likes :
1 times
11 March 2011
sir
plz tell me the answer of 2nd quetion regarding jornal entry....if AS 16 not applicable ? but the asset will be ready to use in next yr...so should i t/f int. to p/l this yr ?wat will be the treatment next yr ?
plz tell me the answer of 2nd quetion regarding jornal entry....if AS 16 not applicable ? but the asset will be ready to use in next yr...so should i t/f int. to p/l this yr ?wat will be the treatment next yr ?
11 March 2011
Assets a/c Dr.
to interst
(capitalisation of borrowing cost)
P&L a/c Dr.
to interst
(being interst charged to p&l a/c as revenue expenditure)
Assets a/c Dr.
to interst
(capitalisation of borrowing cost)
P&L a/c Dr.
to interst
(being interst charged to p&l a/c as revenue expenditure)
Message likes :
1 times
12 March 2011
Let me clarify my question-
Suppose a co. has taken T/L in Jan 2011 on wich int. is incurred @ 20000/month till 31.03.2011.
The machinery is under progress as on 31.03.2011. So, wat to do of int. in this case ? Should i capitalise ?
if no, then should i T/f the intt. To P/l A/c ?
Suppose a co. has taken T/L in Jan 2011 on wich int. is incurred @ 20000/month till 31.03.2011.
The machinery is under progress as on 31.03.2011. So, wat to do of int. in this case ? Should i capitalise ?
if no, then should i T/f the intt. To P/l A/c ?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- FORM 26A APPLICABILITY
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
