21 February 2011
Capital WIP is referred to as Assets under Construction and are represented by a specific Asset class. It is an asset on the balance sheet that is not considered to be a final product, but must still be accounted for because funds have been invested toward its production. It is thus a work that has not been completed but has already incurred a capital investment
Usually depreciation is not charged on Capital WIP.
Following are some examples of capital WIP: - A machinery under installation - A building under construction
CAclubindia
