Capitalization of borrowing cost to land
This query is : Resolved
Tejas Dhami
(Querist)
08 July 2013
A proprietor has bought a land for construction of a factory in future.For its purchase of land,a loan is taken for which interest is paid. The land has not been put to any use and No construction has yet started on the land.
Can the interest be capitalized until the land is put to use?
Can we follow AS 11?
Can the interest be capitalized until the land is put to use?
Can we follow AS 11?
08 July 2013
Yes, till the land is fully constructed all int exp is to be capitalised.
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