02-14-2010, 10:45 PM
Dear
The asset which is not a qualifying asset is supposed to be available for use at the date of acquisition (or soon after it), so its financing cost is associated with its operations and not with capitalization activity. Say, if you get such asset on operating lease and pay the rent, whether you will be capitalizing such rents?
If at any corner of the world a qualifying asset will be leased, capitalization of interest will also be allowed, provided that the total capitalized cost does not exceed PV of MLP (which has a purpose as well).
I could not understand what you actually want to ask. If you will explain it will help.
Regards,
KAMRAN.
The asset which is not a qualifying asset is supposed to be available for use at the date of acquisition (or soon after it), so its financing cost is associated with its operations and not with capitalization activity. Say, if you get such asset on operating lease and pay the rent, whether you will be capitalizing such rents?
If at any corner of the world a qualifying asset will be leased, capitalization of interest will also be allowed, provided that the total capitalized cost does not exceed PV of MLP (which has a purpose as well).
I could not understand what you actually want to ask. If you will explain it will help.
Regards,
KAMRAN.
