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| Topic: |
English
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| Number of pages / Number of words: |
5 / 1322 |
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The costs that are incurred pre-installation of an asset are capitalized and those that are incurred post installation of an asset are charged to revenue.
For example; sometimes foreign currency loans are availed at reduced interest rates. However, some of the benefit of low interest rate is eroded by adverse moment in foreign currency rates...
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However, some of the benefit of low interest rate is eroded by adverse moment in foreign currency rates. That portion only can be capitalized under ASI-10.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
Examples of qualifying assets
-Any Tangible Fixed assets which are in construction process such as Plant and Machinery...
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