Our client is real estate devlopers and this group enters into partnership agreement for each project and same gets disolved on completion .How WIP has to be calculated?This ppl are following AS 2 but they are including
audit fees,advertisement expenses,interest on capital given to partners as part of WIP.This is wrong from my point of view and these all expenses are for this particular project.In the first yr no revenue so i think all the expenses which are not the part of WIP should be included in pre operating expenses what say guys?
CAclubindia
