Capital work in progress

Capital work in progress denotes costs incurred to date on a fixed asset that is still being built at the balance sheet date. The expenditures expended on such assets cannot be recorded as operational assets until they meet a ready-to-use asset’s definition.

When creating the balance sheet, CWIP covers buildings under construction, machinery under assembly. As a result, it is properly named “Capital Work in Progress.” This figure is normally seen in the Net block section.