Capitalisation of Exp
This query is : Resolved
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
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
- Multiple payment of self assessment tax for A Y 2025-2026
- CAPITAL GAIN REDEVELOPED FLAT
- REGARDING ITR FILING QUESTION
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- Query regarding reporting of exempt foreign remuneration in ITR
- Correction in TDS return New Traces Portal
- TDS refund Indemnity Bond
- PF wage ceiling
- F&O reporting in ITR
- WHERE I SHOW GST 0% INVOICE IN GSTR1 (EITHER TABLE 7 OR TABLE 8)
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
