Capitalization of failed borewell
This query is : Resolved
05 April 2019
Whether can we capitalize of expeneses incurred for drilling borewell, however no water found?
If we capitalize, then what is depreciation rate?
Please suggest.
If we capitalize, then what is depreciation rate?
Please suggest.
07 April 2019
It should be totally expensed off as there are no future economic benefits from this expense.
Hence there is no question of depreciation.
Regards
CA Kamal Kant
Hence there is no question of depreciation.
Regards
CA Kamal Kant
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