CA_Final Student
885 Points
Joined January 2010
As per AS - 10 Accounting for Fixed Asset,
An Asset should be valued at its Historical Cost,
Historical Cost includes:
- Purchase Cost
- Non Refundable Taxes
- All other Expenses directly attributable to bringing asset to its Present location & Condition.
Hence if the said debonding charges is such that
- which can be ignored to bring asset to its present location or condition, then its should be charged to Revenue.
- which is necessary to can't be ignored then it should be capitalised.