We imported a Ready to use Machinary, for which seller has a precondition of opening LC. Can we capitalise the LC opening charges as cost incurred for bringing the assets into its present condition???
26 April 2011
The Council of ICAI, at its 280th meeting, held on August 7-9, 2008, has decided to withdraw the "Guidance Note on Treatment of Expenditure during Construction Period", as the same is no longer relevant in the present day context.
26 April 2011
LC charges can be capitalized as per clause 9.1 of AS 10 ,since it will not come under the exclusions mentioned in clause 9.2 of the said standard.
CAclubindia
