Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003


Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Shivam (Audit Assistant)     17 February 2014

Audit - fixed assets

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....... 

 2 Replies

CA. Kuldeep Singhi

CA. Kuldeep Singhi (Entrepreneur)     17 February 2014

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.

Manoj Mehta

Manoj Mehta (Head Of Department (Accounts & Finance))     03 March 2014

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


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Start a New Discussion

Popular Discussion

view more »

Subscribe to the latest topics :
Search Forum:

Trending Tags