alleryStart learning →When substantial technical work continues, capitalisation is normally
AReversed
BSuspended
CExpensed
DNot suspended
Answer & Solution
Correct answer: D. Not suspended
Substantial technical and administrative work shows development is active, so suspension does not apply.
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Related questions
Inventories needing a substantial time to reach saleable condition areA plant takes eighteen months to build. Is it a qualifying asset?General borrowing cost incurred in a year is Rs 50,000, but rate times spending gives Rs 6General loans of Rs 5 lakh at 8% and Rs 5 lakh at 12%; Rs 2 lakh spent on the asset. CapitAn asset is normally ready for use when its physical construction isAmortisation of ancillary costs on arranging borrowings isIAS 23 requires disclosing the capitalisation rate and theGeneral loans: $2,000,000 at 6% and $3,000,000 at 8%. Weighted average rate?