CA Sukriti Jain (Senior, EY) (1184 Points)
10 March 2011what is the time period for an asset to bcome a qualifying asset?
what do we mean by commitment charge?
does amortistion o ancilliary cost includes underwriting charges?
why xchange diference arising rom foreign currency borrrwing is treated as a borrowing cost to the extent that they aare regaded as an addjustment to th interest cost?
CA Ravi Sisodia
(CA,CS,CMA)
(32226 Points)
Replied 10 March 2011
what is the time period for an asset to bcome a qualifying asset = no time limit given, its depands on facts & circumstances.
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 10 March 2011
A qualifying asset: is an asset that necessarily takes a substantial* period of time to get ready for its intended use or sale.
*ordinarily, a period of twelve months is considered as substantial period of time unless a shorter or longer period can be justified on the basis of facts and circumstances of the case. [Accounting Standard Interpretation -1]
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 10 March 2011
commitment charge: at the charges levied by the bank on short-term borrowings (CC limit etc.) for non-utilisation of limit sanctioned.
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 10 March 2011
| Originally posted by : sukriti jain | ||
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is truck a qualifying asset? |
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no, as it does not take substantial time to get ready....
moreover, there may be different opinion of different people
CAclubindia
