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Excess of carrying amount
Accountancy
Sir, This part I am not able to understand, Can u explain with an example?? Video Details ------------- P1 - Accounting Standards - CA Inter AS 16 #2. Commencement of Capitalisation
Answers (1)
Say after adding interest the value of PPE becomes 1,10,000 Actual recoverable amount of PPE (like we have NRV in case of inventory- you will understand it in AS 28) is only 1,05,000 The PPE should be shown at 105000 only. So capitalisation will be restricted to 105000
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