08-16-2006, 03:30 PM
Expenditures are incurred from April 1 but upto 50 so we will not capitalize the rest of 50 until they are used in May. And regarding para 15 it is a general one and not a specific one. It also doesnt mention that the borrowing cost is to be capitalized when expenditure is being incurred. It just says that specific borrowings are to be capitalized.
and regarding the reason for subtracting the investment income. It is a sort of incidental income like one in construction contracts. So it shud decrease the cost.
And i know the PAC book very well, as during module C we pointed out many mistakes in it.
anyways, i wud say Ali to reply ur question, as he is also of the same view as mine. He may be able to reply in a better way.
and regarding the reason for subtracting the investment income. It is a sort of incidental income like one in construction contracts. So it shud decrease the cost.
And i know the PAC book very well, as during module C we pointed out many mistakes in it.
anyways, i wud say Ali to reply ur question, as he is also of the same view as mine. He may be able to reply in a better way.
