Hi all,
While auditing a charitable trust i came to a scenario where a wip building is in process. The trust has purchased Rs:-10 lakhs cement for bulding the remaining work of new wip building which will be most probable completed in 2-3 years.So the cement expense which is used here , what can be it called ? Can we call it capitalisation of wip buiding ? or the word capitalisation can be only used after the completion of building ? the expense which has been done is moved to wip building account in balancesheet ? but what can we actually call the nature of expense ? is it capitalisation of wip building or what else can be it called ????
please reply
CAclubindia
