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In case of real estate construction expenses are capitalized till the stage of what ?

if, after handing over the property to proposed client ,we incure some expenses related to construction the treatment will be,1) capiat nature2) revenue nature ?

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Question added by PRADEEP VELAYUDHAN , Chief Accountant , Super Group
Date Posted: 2015/06/03
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer:           2) revenue nature.

Tamer Elbeshbishy
by Tamer Elbeshbishy , Financial and Administration Manager , Muscat Towers Holding Group

It depends on the nature of the expense it self.. What is the clear type of this expense and How much amount, according to materiality principle it could be different .

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

2) revenue nature , according to me.

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