Capitalisation of loan processing charges
This query is : Resolved
12 July 2016
Hello,
Can we (the company) capitalize the cost incurred as Administrative Charges which is charged by the Lender Bank to the Asset?
Also, there has been an Pre-EMI payment made to the Lender Bank. So can we capitalize this Pre-EMI cost to Asset?
If not, why? and where to charge the Pre-EMI expense in the books of the company?
Can we (the company) capitalize the cost incurred as Administrative Charges which is charged by the Lender Bank to the Asset?
Also, there has been an Pre-EMI payment made to the Lender Bank. So can we capitalize this Pre-EMI cost to Asset?
If not, why? and where to charge the Pre-EMI expense in the books of the company?
Amol S Joglekar
(Expert)
12 July 2016
yes, you can very well capitalise the same.
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