ABC Enterprizez operates a major chain of hotels located in cities. The company has acquired a new restaurant in Mumbai. New restaurant requires significant renovation expenditure. Management expects that renovation will take minimum 100 days during which restaurant will be closed. Management expects remodeling cost for Rs. 35,67,000 and salaries of staff of restaurant before its opening for Rs. 12,09,000. You are required to explain the treatment of these items as per AS 10.
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ABC Enterprizez operates a major chain of hotels located in cities. The company has acquired a new restaurant in Mumbai. New restaurant requires significant renovation expenditure. Management expects that renovation will take minimum 100 days during which restaurant will be closed. Management expects remodeling cost for Rs. 35,67,000 and salaries of staff of restaurant before its opening for Rs. 12,09,000. You are required to explain the treatment of these items as per AS 10.
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