If we take a loan for purchasing of land which is consider as stock for sale?? How I treat with interest on this loan?? It will show In P&L or It will Captitalised??
Jai shukla (article trainee) (39 Points)
18 August 2012If we take a loan for purchasing of land which is consider as stock for sale?? How I treat with interest on this loan?? It will show In P&L or It will Captitalised??
shivam gupta
(Student)
(142 Points)
Replied 19 August 2012
As per AS 2 , finance cost should not be included in the Valuation of Inventories because finance cost does not help to bring the stock at its present location & condition
Hence this cost should be transferred into P&L A/c
CAclubindia
