Please Help: Accounts-Electricity charges should be capitalised?
Posted Date : 10-Feb-2013 , 05:07:02 pm | Posted By Saurabh Bansal
Whether cost incured for the connection of electricity for the use of New Plant should be capitalised or not?
Category : Accounts | Answers : 2 | Comments : 3 | Hits : 1015
Answers
Answer By: naga rakesh
YES IT HAS TO BE CAPITALISED
Answer By: Mrattunjay
Electricity connection charges for new plant should be capitalise : please refer AS-10 there is specific provision for the same.
Also you can refer Ramaiya commentary of corporate law where so many explanation given: Refer page no. 2282 for pre-oprative expenses capitalization procedure.
If you required any other clarification concerning capitalisation issue : please come again.
Also you can refer Ramaiya commentary of corporate law where so many explanation given: Refer page no. 2282 for pre-oprative expenses capitalization procedure.
If you required any other clarification concerning capitalisation issue : please come again.
Comments
GOVINDA
10-Feb-2013 , 10:24:09 pmIt should be capitalised till the plant put to use.
naga rakesh
11-Feb-2013 , 05:20:06 pmYES IT HAS TO BE CAPITALISED
Ankit Somani
02-Apr-2013 , 06:00:18 pmYes it would be capitalised