Please give your opinion on the accounting treatment as per Accounting Standards of interest cost paid and earned by a Company which even after 2 years of incorporation has not started to implement the project (sugar mill).
Not even a single purchase order or work order has been issued by the Company till date.
Issues involved are:
1. Can interest income be netted from interest cost and put in CWIP?
2. Can interest income be netted from interest cost and charged off to P/L of that year? Will IT Act allow the carry forward of such loss?
Thanks in advance.
CAclubindia
