01-01-2010, 12:55 PM
Hi All,
May i know what is the use to calculate interest in relation to fixed asset?
"For internal accounting purposes, it is also relevant to evaluate the fixed capital tied up in an asset in addition to the depreciation. You can account for the tied up capital by calculating imputed interest"
Thanks
Rgds
May i know what is the use to calculate interest in relation to fixed asset?
"For internal accounting purposes, it is also relevant to evaluate the fixed capital tied up in an asset in addition to the depreciation. You can account for the tied up capital by calculating imputed interest"
Thanks
Rgds