# Capital Work-in-Progress (CWIP) — Disclosure
CWIP represents PPE under construction — not yet ready for intended use. Long-pending CWIP often signals project delays, cost overruns, or risk of impairment. Schedule III therefore mandates two distinct disclosures.
## A. CWIP Ageing Schedule
This shows how long each amount has been sitting in CWIP. Two project categories are mandated:
| CWIP | < 1 year | 1–2 years | 2–3 years | More than 3 years | Total* |
|---|---|---|---|---|---|
| Projects in Progress | |||||
| Projects temporarily suspended |
\*Total must tally with the CWIP amount in the Balance Sheet.
## B. CWIP Completion Schedule
This is an additional disclosure required only for CWIP projects where:
- Completion is overdue compared to the original plan, OR
- Cost has exceeded the original budget.
| CWIP Project No. | Less than 1 year | 1–2 years | 2–3 years | More than 3 years |
|---|---|---|---|---|
| (project name) |
The columns show expected time to completion from the reporting date.
## Why Two Schedules?
- The ageing schedule tells users 'how stale' the CWIP is.
- The completion schedule tells users 'when will it finally be capitalised', flagging troubled projects.
## Audit Focus
- Verify the split between 'projects in progress' and 'temporarily suspended'.
- For long-pending CWIP (>2 years), consider impairment risk — has management performed an assessment?
- For overdue/over-budget projects, ensure the completion schedule is disclosed.
- Trace project-wise CWIP balances to the project accounting records and underlying invoices.