Fixed Assets Interview Question:

Tell me can start up costs associated with getting a new location up and running within your business be capitalized even though they are non-capital items?

Submitted by: Administrator

As per Accounting standard 16 specified by ICAI , Borrowing cost, Interest cost even though non capital in nature which must be capitalized if they incurred for acquisition of Qualifying capital asset, but those cost shall be capitalized only up to the date of commencement of production utilizing such capital asset, Any amount of interest incurred after commencement of production shall not be capitalized and shall be debited to Profit and loss account.
Submitted by: Administrator