Fixed Asset Capitalisation

Raj (Article) (72 Points)

15 March 2009  

Consider the following situation:

An asset has been constructed, and is substantially ready for use and certification has been obtained from the engineer about completion on 28.02.09, the company contends that the asset will not be used upto 31.03.2009 and so wants to transfer the same to Fixed assets on 01.04.2009 and claim depreciation for it from 2009-10. Is the treatment correct?