Facts of the case:
A power generating company incurred huge expenditure on technical feasibility, research, survey, design and DPR reports initially planning that they will set up 210 mw capacity plant then changed their plan to set 600mw and finally now company is setting 660mw plant. AND IT IS WORTH MENTIONING THAT EXPENDITURE INCURRED ON 210MW OR 600MW COULD NOT BE USED IN 660MW PLANT. Further, as per AS-10 expenditure only directly attributable to the project can be capitalized. Whether expenditure incurred at the time when company planned for setting 210mw and 600mw plant should be capitalized or charged to revenue.
CAclubindia
