Valuation of capital work in progress

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Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 how is capital work in progress valued?

CA C.JANANI

CA C.JANANI (Expert)
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10 October 2012 All directly attributable costs are to be included.
For Ex.

Site preparation,installation costs ,all purchases,labour, erection etc..

Internal profits are to be eliminated,

General and administrative overheads are not considered.

No depreciation is charged on CWIP.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 thanku..

Gurcharan

Gurcharan (Expert)
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31 October 2012 In summary actual cost of the bring the assetes to the current location are considered to be part of the CWIP and the actual fixed asset. No internal profits / margins are considered. Generally dedicated engineers and team working direcrly on the projects should, however, must be considered for this purpose.

regards