Sample Disclosure – Accounting Policy On Capital Work-in-progress (27 October 2009)

Capital work-in-progress

Capital work-in-progress is stated at cost and not depreciated. Depreciation on capital work-in-progress commences when the assets are ready for their intended use.

Note: This is usually disclosed as an asset category of property, plant and equipment. The balance of unrecognized amount of capital work-in-progress compared to the contracted full price is disclosed as capital commitment

Be Sociable, Share!

Tagged As: , , ,

3 Responses to “Sample Disclosure – Accounting Policy On Capital Work-in-progress (27 October 2009)”

  • […] Posted by learnaccounting on October 27, 2009 If you need sample accounting policy on capital work-in-progress please click this: Sample Accounting Policy On Capital Work-in-progress […]

  • mus on February 9, 2011

    what is the accounting entry for capital work-in-progress cost and how does it show in financial report?

  • admin on February 9, 2011

    It’s not complicated. Capital work-in-progress is an asset. The double entry is Dr. Capital work-in-progress (asset) and Cr. Bank/creditor (cash outflow or payable).

Leave a Reply

Your email address will not be published. Required fields are marked *