Ways to treat borrowing expenses
This query is : Open
26 June 2016
A land has been purchased..and shown in books as inventory according to its business of buying and sale of property...the borrowing interest according to AS-2 cant be capitalised...
So according to rules the interest expenses would be taken to P&L account which results in huge net loss for company...
suggest any way to deal with it by not showing it as p&l expenses..!!!!!!!!!!!!!!!!!!!!
26 June 2016
Dear Ananya,
The question of capitalisation of borrowing cost does not arise since this is a question of stock and not fixed asset. you'll need to take it to p and l account. the said loss can be set off in next 8 years. what's the harm in that?!
26 June 2016
Harm is my current net profit goes to (-) 1 crore...which affects the image of comapany...so i was seeking to get an advice of anything through which i could change the accounting....!!!!!!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
