20 August 2012
Expenses related to the construction of as Asset is capitalised during construction period, what if I earn Interest income from the surplus fund parked in bank or money market instruments????
whether it has to be reduced from my cost of asset (net of tax) ???
20 August 2012
how you can relate surplus fund from construction.
i mean surplus funds you are getting from where. if u r capitalising the interest on fund and also getting interest then u must reduced from construction cost
20 August 2012
Actually this funds have come from the loan taken for construction of asset. Amount of loan has not been fully utilized so from the surplus fund company has made investment and company has earn interest on the same. now by what amount cost of assets is to be reduced means gross interest amount or net interest amount after paying income tax gross interest amount???
CAclubindia
