There is a Machinery which is to be purchased by us and it has to be delivered by the supplier within the time frame .If not Liquidated damages will be levied and this is governed by the terms of the contract.The supplier supplied the machine after the time frame and hence Liquidated damages are invoked.state with reference to guidance note or compedium of opinion guidelines whether this liquidated damages will go to reduce to the cost of the Asset ?
Note : I know that AS-10 does not speak about this so please do give ur views and this is urgent
CAclubindia
