Capitalisation timeline file: start, suspension and end

Context

Constructions Aubrac SA (fictitious entity) builds a plant and its office annex, financed by a specific loan of 3,000,000 EUR at 6% per year (15,000 EUR per month), drawn on 1 February 20X5. Year end 30 November 20X5. The site experiences a three-month interruption, a rain delay and a staggered completion.

Assignment

Capitalisation timeline file

Purpose of the workpaper

For each asset under construction, describe the site, enter the expenditure, the progress payments and grants received, the duration between the start and the end of inclusion and the duration of extended suspensions, then compute the eligible expenditure and the inclusion period. Assess each interruption (extended suspension or temporary delay, substantial work) and the completion date. The borrowing costs of each phase come from the loan statement (a datum of the file).

Questions of the file covered by this workpaper

• Do the interruption from June to August and the delay in October suspend inclusion? Justify.
• On what date does inclusion end and what about the annex completed on 31 October? Justify.
• Compute the eligible expenditure.
• Compute the inclusion period.
• Record the borrowing costs by phase and the placing in service.

• ScheduleLoan statement by phaseOpen
• MinutesSite logOpen
• ScheduleExpenditure on the assetOpen
• ExtractLedger extractOpen
• MemoCleaning contractOpen