Dear Frnds,
For example, When a factory is under construction for more than a year and a machinery is purchased to be installed in the said factory. for say machinery is purchased on 30.6.2011 and installed and capitalised on 30.09.2011. The factory is also capitalised on the same day. The interest paid for the loan borrowed for the construction of the factory will be capitalised till the date of capitalisation. In case of machinery, the 3 months interest paid have to be capitalised? please suggest on the above case.
CAclubindia
