Buling is under construction. Part premise is being constructed, while remaining is work in progress. Assets like Air Conditioner, Furniture is purchased. When should these assets be capitalized ? Should they be capitalized after construction of Builing ?
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Depreciation of furniture & fixtures
Replies (4)
Yes the depreciation starts only when asset is put to use.. so here depreciation starts after building is completed and you start your business..
Building under construction is capital work in process on which you cannot provide depreciation. Once the asset gets ready and put to use you can provide for depreciation.
My question is about capitalization, not depreciation.
Show it as capital WIP now and when the construction is completed in all material respects show it under appropriated head under fixed assets
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