Capital work in progress

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2012 one property on which construction was stpopped before 3-4 years back. Because, the organisation has passed the Board Memo to sell the property. Such uncompleted work is continously shown by yhe Company in fixed asset as capital work in progress. But auditor objects that. what will be its actual treatment. Whether it will be shown continously under that head or transferred to land and building head up to the date of selling of such property. Please guide us.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

12 September 2012 If the assets are to be sold and not to be used for business any longer then the correct classification in my view would be to classify it as assets held for sale.