We borrowed $180,000,000 from bank in 2006 to build up 1,800 units of townhouse. We are in the stage of pre-development. The project will be completed in 2009. We don't have any revenues in 2006. Our loss is $180,000,000 in our income statement. The Board of Director tells me this is very strange. Is this correct? How can he explain this to the board members? Most of the board members don't know anything about accounting.
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Can we capitize the pre-deveopment expenses at the end of the year. -
Sounds like QB accounting
All you have is costs that must be capitalized.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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I'm not sure about capitalizing your predeveopment costs,
but I'm sure no legitimate person working on a $180 million project would go trolling an internet message board looking for advice.Comment
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What?!!
No bank on the planet is going to allow you to borrow $180 million dollars without some kind of oversight, both legal and accounting. Either you've put out a bogus question or have pi**ed off your accounant to the point that he/she has dropped you.
What board of directors is telling you this is strange, yours or the bank? If they can't see that you're making idiotic bookkeeping mistakes they don't deserve to be serving in a fiduciary capacity.
Give me a break!
JoshInNCComment
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I guess....
the original poster never heard of 263A.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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