Treating Work in Progress
This query is : Resolved
10 September 2009
Hi All,
Please provide me some feedback on treating Work in progress.
A software company subsidiary of foreign company (100% foreign share holding) got incorporated in October and started operations in November. Till year ending March 2009 there has been no billing to parent because the software development (project development) has not been completed. During finalization of accounts can we treat the expneses incurred as Work in progress?
Share capital amount has been utilized for the expenses from october till March.
thanks,
harsha
Please provide me some feedback on treating Work in progress.
A software company subsidiary of foreign company (100% foreign share holding) got incorporated in October and started operations in November. Till year ending March 2009 there has been no billing to parent because the software development (project development) has not been completed. During finalization of accounts can we treat the expneses incurred as Work in progress?
Share capital amount has been utilized for the expenses from october till March.
thanks,
harsha
10 September 2009
Although this is not WIP but Yes you can defer the costs which are not to be charged off as a period cost.It depends on the facts and circumstances of the case.
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