01-22-2011, 04:28 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />From the question it is not clear whether or not the asset falls within the definition of Qualified Asset, as defined in IAS-23. It is also not clear whether delayed charges paid against loan or as penalty as per agreement with Pakistan infrastructure board?
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Nothing in the query asked suggests that the capitalization charges have to do any thing with IAS 23. As far as my understanding is concerned the delay charges are due to non commencement of production at the agreed time. In such situation they should be expensed in the period in which they are incurred.
<br />From the question it is not clear whether or not the asset falls within the definition of Qualified Asset, as defined in IAS-23. It is also not clear whether delayed charges paid against loan or as penalty as per agreement with Pakistan infrastructure board?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Nothing in the query asked suggests that the capitalization charges have to do any thing with IAS 23. As far as my understanding is concerned the delay charges are due to non commencement of production at the agreed time. In such situation they should be expensed in the period in which they are incurred.
