A building construction is stopped after one year. During construction business have made advance payments to suppliers. How this cost should be treated?

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Posted by:
Krishna Kumar
16-January-2018

Business construction is stopped due to legal reason. And a case is ongoing which seems not in favour to business. So, what should now do with advance payments and the cost already incurred???

IAS IFRS

Question added by Mujibur Rahman ACCA , Founder And CEO , MR-Accountants
Date Posted: 2015/12/10

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1 Answers

by Bishan Jamwal , Finance Manager , G4S Qatar WLL

These advances to suppliers are taken under 'receivables'. Derecognition or impairment as per IAS.

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A building construction is stopped after one year. During construction business have made advance payments to suppliers. How this cost should be treated?

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