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We should capitalise when the asset in under construction right? But in this Qus.why don’t we capitalise and held in capital WIP?

Soon to be CA

CA Inter

★ 4K+

1 day ago

117

Answers (6)

If asset is not complete we show it under CWIP.

CA Suraj Lakhotia

Admin

11 hrs ago

CA Suraj Lakhotia Admin

If asset is not complete we show it under CWIP.

Is that we should capitalize only when the asset is ready for its intended use? While in process we should show it under CWIP

Thread Starter

Soon to be CA

CA Inter

★ 4K+

8 hrs ago

But we stop capitalisation when the asset is ready for its intended use right?

Thread Starter

Soon to be CA

CA Inter

★ 4K+

8 hrs ago

Thread Starter

Soon to be CA

Is that we should capitalize only when the asset is ready for its intended use? While in process we should show it under CWIP

Yes

CA Suraj Lakhotia

Admin

8 hrs ago

CA Suraj Lakhotia Admin

Yes

Cessation of capitalisation - when the qualified asset is ready for its intended use.

036 137

CA Inter

★ 4K+

1 hr ago

Thread Starter

Soon to be CA

Is that we should capitalize only when the asset is ready for its intended use? While in process we should show it under CWIP

Sir, we should cease the capitalisation, when the asset is substantially ready for its intended use. Am I right?

036 137

CA Inter

★ 4K+

1 hr ago

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