laying down of road expenses
This query is : Resolved
deepak sharma
(Querist)
30 June 2009
hi all,
I want to ask whether in the following situation the expenditure can be treated as deferred revenue expense or can directly be charged to revenue or other possibilites:
conpany has entered into an agreement with the AP govt for laying down of road of 57km in the area which is not owned by the company. The expenditure is around 5 crores. the company is charging this expenditure to P&L a/c in the same year of incurrance. what if the company also recieves subsisdy say 50% of the expenditure.
Please clarify soon..
I want to ask whether in the following situation the expenditure can be treated as deferred revenue expense or can directly be charged to revenue or other possibilites:
conpany has entered into an agreement with the AP govt for laying down of road of 57km in the area which is not owned by the company. The expenditure is around 5 crores. the company is charging this expenditure to P&L a/c in the same year of incurrance. what if the company also recieves subsisdy say 50% of the expenditure.
Please clarify soon..
Ashish Shah
(Expert)
24 July 2009
The same can be capitalized as Company infrastructure thought the same may not be owned by the Company.
Owner ship of the asset is some times exempted as condition of capitalization.
Owner ship of the asset is some times exempted as condition of capitalization.
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