Fixed assets capitalisation
This query is : Resolved
07 January 2015
Whether administrative expenses incurred for construction of a mall building can be capitalized in Fixed assets? if yes then give me some administrative expenses examples and if No why?
07 January 2015
In accordance with the accounting principles laid down in AS 10,
1. These administrative expenses incurred during the construction of the project should be capitalized if these are directly attributable to the construction of the fixed asset or to bring assets to its working condition for intended use.
2. If these expenses are not directly attributable to the construction of the project or directly attributable to fixed assets to bring assets to its working condition for its intended use, these expenses should be charged to statement of profit and loss in the period in which the expenses are incurred.
1. These administrative expenses incurred during the construction of the project should be capitalized if these are directly attributable to the construction of the fixed asset or to bring assets to its working condition for intended use.
2. If these expenses are not directly attributable to the construction of the project or directly attributable to fixed assets to bring assets to its working condition for its intended use, these expenses should be charged to statement of profit and loss in the period in which the expenses are incurred.
Message likes :
1 times
07 January 2015
thank u sir for that but i do came across that but give me certain examples that are administrative expenses related to construction that can be capitalized for fixed assets
07 January 2015
Salary, travelling etc of employees as well as other expenses like courier, stationary, rent of office premises, etc
Message likes :
1 times
07 January 2015
thank u sir
Plz tell me the basis for capitalizing the salaries to fixed assets
Plz tell me the basis for capitalizing the salaries to fixed assets
07 January 2015
Base on employee time spent on project.
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
- EXEMPTION OF LONG TERM GAIN UNDER SECTION 54F
- Refund of Rs.4,00,000/- pursuant to Appeal Order – Deceased Proprietor & Closed Bank Account
- GST applicability on Shipping charges
- Refund credit after 143 (1) intimation
- Rebate U/S 87A on Short Term Capital Gain on Sale Of Property .
- Stop filling ITR
- FOB freight
- SALE SHOWS ACCORDING SERVICE PROVIDE BUT SERVICE RECEIVER (GOVT. DEP) SHOWS SALES IN 26Q DIFF YR
- GST Registration DELHI MUMBAI
- Machinery taking back from repair work shop
- Income tax return change regime form necessary or not?
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- 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)
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
