Produce one by one

Financial Reporting

Marine Ltd Q - If the Q specifies that only one ship can be constructed at a time (ie one by one), then can we capitalise the borrowing cost in respect of ships 2 and 3? Starting construction of ship 1 is a step towards starting for ship 2 as well. Is this right? [Video Time Stamp: 01:12] Video Details ------------- Ind AS - CA Final Ind AS 23 Borrowing Costs #17. Illustrations 11 & 12 - Comprehensive examples

Vishnu Muraleedharan

CA Final

★ 32K+

22-Feb-26 13:32

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Answers (2)

Best Answer

each ship is an independent unit and can be operated on its own. If there was dependency then your logic is correct. For e.g. Construction of ground floor is required for first floor

CA Suraj Lakhotia

Admin

23-Feb-26 15:32

CA Suraj Lakhotia Admin

each ship is an independent unit and can be operated on its own. If there was dependency then your logic is correct. For e.g. Construction of ground floor is required for first floor

Thank you sir

Thread Starter

Vishnu Muraleedharan

CA Final

★ 32K+

26-Feb-26 07:33