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QUERY
Nuclear Power Corporation Ltd. (NPCL) has been established to construct nuclear plants in India. Typically, constructing a nuclear plant would take anywhere between 7-12 years depending upon the size and complexity of the project. Currently, NPCLs only activity is construction of one nuclear plant, though it plans to build more in the future.
NPCL employs a Chief Financial Officer (CFO), whose responsibilities include preparation of financial statements, overseeing audits, ensuring compliance with commercial regulations, arranging funding, and liaising with the board of directors, government bodies, and various multilateral agencies. At the nuclear plant construction site, NPCL also employs a site accountant and a store-keeper.
Whether the salaries and related employee benefits—such as bonus, gratuity, and employer’s contribution to the provident fund—for the CFO, site accountant, and store-keeper are capitalized as part of the cost of constructing the nuclear plant?
RESPONSE
Ind AS 16 References
Elements of cost
Paragraph 16
The cost of an item of property, plant and eq
