We have revised budget for this project in last year to minimize scope of project and the cancellation charge were paid at that time already.
However I have re-confirmed with project owner this morning and we don’t have cancellation to be paid anymore, also pending POs commitment are still active and will be paid to supplier for receiving assets.
As confirmed owner;
1) Assets (M&E , Facilities) under this project will be utilized for more efficiency in truck Line. So, assets will be confirmed for capitalization on ready to use date.
2) For Special Tools, tooling are created completely before the capacity project was dropped. So, we received tooling and recorded under CWIP (since it’s completed tooling)
However, we may not utilize those tooling, due to the capacity of existing Tooling is enough to support our current volume. So, in this case , I am not sure that should we maintain the CWIP until we get confirm from GSC team for utilization?
I am sorry that our CWIP report still maintained the Capacity expansion, due to after revised budget last year, I got confirmed that the project was postponed to Y2014 and
I don’t know that it was rescoped and related to efficiency not capacity expansion kha.