Hey one factory has completed more than 60% of the compound wall in 3 years. They want to capitalise it. Can they do it?? Balance 40% is pending.......
Menu
Audit - fixed assets
Replies (2)
I think till the time the 40% get completed it should be shown as WIP & then it should be capitalised & depreciation should be charged on it.
Dear Shivam
Kuldeep is correct but there is another way of capitalising it.
You can show it as completed boundry wall (For 60%) in the current year and you can treat the rest 40% as addition to completed boundry wall in the next year. Hence you will be able to take the benefit of Depriciation in your accounts from current year itself.
I hope it will help you
Regards to you
Recent Threads
- Articeship Form 107
- TAN for Multiple States
- Delivery Challan serial number Issue and return ru
- After filing form 71 For TDS mismatch
- UNCLAIMED TDS REFUND QUERY
- Rcm payable which head
- Query of GST
- Long Term Capitalgains on sale of residential prop
- How Salaried Individuals Can Reduce Capital Gains
- NSTPI registration
Related Threads
CAclubindia
