Activation of expenses prior to the start of the work. Let’s suppose that from the moment you have started the construction procedures and obtained the corresponding works license, there are a series of direct expenses attributable to each promotion, among which are the financial expenses and the opening of the loans obtained from the developer. . We also contemplate the possible capitalization of the interest on loans obtained for the purchase of lots, as the case may be, from the moment in which the necessary steps have been taken to start works. Can you capitalize all these expenses, and register it as a higher value of the stock?
Suppose, that the work that has been started is paralyzed by the circumstances of the market, because the company prefers to wait for the market to normalize. In this case, can expenses related to interest and loan opening costs capitalized to date be written off or expensed? Or only those that originate from the paralysis of the works?
What a difference there is, in the case that the work has been paralyzed because the City has denied a work license initially granted, cancellation that has been the subject of a demand by the promoter pending resolution at this time. Could all of the construction costs incurred to date be lost or expensed? Among these expenses, besides interest and other capitalized financial expenses are those of the corresponding works licenses, which probably will not serve the company since it will have to ask for it again. Should a baseline check be done to check what can be considered as an expense?
There are lots on which licenses have been initiated, etc., but construction has been paralyzed. In this case, could the expenses activated to date, which could consist of licenses, projects, interests, financial expenses, etc…