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Q. > Please Help: ACCOUNTING STANDARDS
company is in process of setup a wire manufacturing plant. the construction phase of the plant from start to till the production run start is about three year. during this period some of the machines are developed at plant site and some of them are taken on lease which are ready to use in condition. now thease leased machines are received by company in 2nd year of construction period. what will be the treatment of lease rent paid for two year which belongs to pre construction period?
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Krishnendu Baran Sarkar
07-Aug-2011 , 12:37:38 amcapitalise the portion till the period of commencement of commercial production.