Hi
What should be the accounting treatment for an incompleted asset at the end of the month
1. All the expenses / procurements are posted to IO
2. At the end of the month, this porion needs to be settled to AuC for the Balance sheet purpose
I guess at this point of time, following should be the accounting entry
AuC Dr
Capital exp Cr
Now, how is this entry reversed or does this need to be reveresed at the beginning of the next month if the asset is still not completed.
Does all the IO's need to be settled at the end of the month (even in case of a expense project)? If its is settled and the project / Asset is still incomplete, how is the the total expenses / capital exp tracked if it goes for multi months
Thanks
Shiv