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<p>A company has availed term loan for civil works. Interest during construction is capitalised.</p>
As Long as the cost of the building includes what have been paid in the nature of interest . They should capitalized as they are included in the building cost .
It is added to buildings block under “fixed assets” of balance sheet and depreciated thereafter alongwith buildings
It is added along with the other costs of construction that form part of the Value of the assets at the stage of its full completion.
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