Insurance

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RIMPI SINGHAL (Querist)
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21 June 2008 Sir,

whether stock insurance done directly through by bank be bifurcated into prepaid insurance or not.

Whether insurance at the time of purchase of car etc. should be capitalised or not.
And if capitalised, it should be bifurcated in to prepaid or not. OR whole insurance will be capitalised.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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21 June 2008 1. If it is for the subsequent period, it is no doubt accounted under prepaid category.

2. Insurance at the time of purchase has to be capitalised.

3. No question of prepaid in the case of capitalisation.