It may please be clarified, if during construction of an asset, some transportation of construction materials are done by the owner of the asset under construction on behalf on the contractor and some money is realized from the contractor then what will be the treatment of this recovery for transportation cost in the books of the owner ,as per IFRS. Earlier we used to treat this type of income as Capital Receipt & used to reduce from Capital Work in Progess . Now we atract your attention to para no 21 of IAS 16 also . Please reply with relevant paragraph of particular IAS/ IFRS to make correct treatment.
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