08-14-2006, 08:04 AM
Ans No 01
now,i dont agree to this solution
look speific borowing is capitalised irrespective of expenditure,infact it depends on the borrowing itself,so the day it meets the recognition cirtiea that shud be capitalised,however,this wud be reduced by in case there is any temporary investment income during that 1 month
its only general borowing whose capitalisation is dependant on expenditure
so solution shud be as under
BC to be capitalized = 100*9/12*.8+100*7/12*.1
and this is as per a very credible source..so plz do discuss it with any1 else 2
now,i dont agree to this solution
look speific borowing is capitalised irrespective of expenditure,infact it depends on the borrowing itself,so the day it meets the recognition cirtiea that shud be capitalised,however,this wud be reduced by in case there is any temporary investment income during that 1 month
its only general borowing whose capitalisation is dependant on expenditure
so solution shud be as under
BC to be capitalized = 100*9/12*.8+100*7/12*.1
and this is as per a very credible source..so plz do discuss it with any1 else 2
