Dear All,
There is a commercial building consisting of 10 floors of which first 4 floors have been constructed and ready to use/sale.
The client has taken a loan for the said assets.
My question is, whether interest on said loan should be capitalized in full or there should be a segregation as regard to the completed floors. whether completed floors should be regarded as Independent assets?
If it is so then the interest should not be capitalised in full and only for remaining 6 floors should be capitalised As per As-16 read all together with As-10.

i hv some query for diluted eps due to employee stock option

if company has issued shares to its employees for than fair value of shares than cash received by company resulting into liquidity of company than comapny should invest the same in its business the net profit increases due to the investments than what will be effect of diluted eps of the company?

e.g. company had 500000 equity shares outstanding on 1-1-2001.net profit for 2001 was rs.1200000 average fair value per share during 2001 was rs.20 company has given share option to its employees of 100000 shares at option price of rs.15/- than profit due to rs.1500000/- what should the effect of the same??

An advance travelling payment of 40,000 was made to an employee, after his travel he submits bil for 30,000 and returns remaining amount. Could anyone please provide journal entries for this transaction in copanies books

bonus utilized for reduction of premium should be added and subtracted from LIFE ASSURANCE FUND or should be only subtracted.

please help me.

A machine was bought @ Rs. 5,00,000 in the year 2000. The depreciation rate is 25% as per book of accounts. It has estimated life of 20 years and has no salvage value. The market price of new machine is Rs. 9,00,000 in the year 2010.

What is the procedure for calculating in replacement method of depreciation?

Even the Interest Paid on Loan taken for the purchase of property should be capitalised?

Hi,

When a Company pays the Stamp Duty, Registraion Fees & VAT on Purchase of a property, these taxes & fees should be included to the cost of property or shown as expense.

Dear Sirs,
According to Section 10AA of IT Act, a unit in SEZ can avail exemption from 6th year only if it has transferred an amount equal to exemption claimed i.e 50% of profit.Such reserve can be utilised only to acquire machinery or for the purpose of business until such machinery is acquired.

My doubt is what are the entries to be passed in the books when such reserve is utilised to buy the machinery.

A company purchaesd Capital Assets from any supplier. Supplier raised bill including VAT. Company Capitalised whole amount of bill inculding VAT because company is unable to take VAT Credit.

Now My Questions are:-
1. Is this treatment is right as per AS-10.
2. Is this treatment is right as per company law, 2006.
3. On what amount company charge depreciation as per AS-6.

At the year end NRV of that asset is less than purchase cost( excluding VAT).

4. On how much amount company book impairment loss.

Please suggest the treatment on above problem as per IFRS.

Dear Sir/Madam

X Ltd. 10% debentues of Rs.20,00,000 at 8% discount redeemable at par . Assume that the debentures areredeemable by drawing method in the following manner:
YEAR END FACE VALUE (Rs.)
2 2,00,000
3 4,00,000
4 6,00,000
5 8,00,000
thediscount on issue of debentures will be written off in the 1st and 2nd year as

(a) Rs.40,000 , Rs.40,000
(b) Rs.40,000 , Rs.36,000
(c) Rs.36,000 , Rs.28,000
(d) Rs.28,000 , Rs.16,000

Ans:(a)Rs.40,000 , Rs.40,000

Please tell how to calculate?