Capitalisation of Exp
This query is : Resolved
Jayesh Jagetiya
(Querist)
25 August 2009
Dear Friends,
We have Opened a new Company in F Y 08-09. Up to 31.03.09 the Construction the Plant is going on. Yet any revenue not started. The production also not started. We have incurred the following type of expenditures. Now should we capitalise these expenditures? In which Asset head we have to keep these?
INTEREST & FINANCE CHGS-OTHERS
INTEREST ON FIXED PERIOD LOANS
INTEREST INCOME ON FDR
COMMUNICATION EXPENSES
FREIGHT AND OCTROI OUTWARD
INSURANCE
LEGAL & PROFESSIONAL CONSULTANCY
MISCELLANEOUS EXPENSES
PAYMENT TO AUDITORS
STATIONERY, PRINTING & PHOTOCOPY EXP.
TRAVELLING & CONVEYANCE EXPENSES
STAFF WELFARE
We have Opened a new Company in F Y 08-09. Up to 31.03.09 the Construction the Plant is going on. Yet any revenue not started. The production also not started. We have incurred the following type of expenditures. Now should we capitalise these expenditures? In which Asset head we have to keep these?
INTEREST & FINANCE CHGS-OTHERS
INTEREST ON FIXED PERIOD LOANS
INTEREST INCOME ON FDR
COMMUNICATION EXPENSES
FREIGHT AND OCTROI OUTWARD
INSURANCE
LEGAL & PROFESSIONAL CONSULTANCY
MISCELLANEOUS EXPENSES
PAYMENT TO AUDITORS
STATIONERY, PRINTING & PHOTOCOPY EXP.
TRAVELLING & CONVEYANCE EXPENSES
STAFF WELFARE
03 September 2009
Hi Jayesh,
As far as the capitalization of the asset is concerned Apply AS - 16 borrowing Cost for the capitalization of the invoice amount.
All the costs that are incurred for bringing the said plant into operationg need to be capitalized,
All the other expenses of administration expenses should be grouped as pre-operating expenses.
Regards,
V R Nanda
As far as the capitalization of the asset is concerned Apply AS - 16 borrowing Cost for the capitalization of the invoice amount.
All the costs that are incurred for bringing the said plant into operationg need to be capitalized,
All the other expenses of administration expenses should be grouped as pre-operating expenses.
Regards,
V R Nanda
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