Capitalization of debonding charges
Krishna Rayabagakar (Manager Accounting) (34 Points)
22 March 2016Krishna Rayabagakar (Manager Accounting) (34 Points)
22 March 2016
Saliq Ansari
(CA_Final Student)
(885 Points)
Replied 22 March 2016
As per AS - 10 Accounting for Fixed Asset,
An Asset should be valued at its Historical Cost,
Historical Cost includes:
Hence if the said debonding charges is such that
Krishna Rayabagakar
(Manager Accounting)
(34 Points)
Replied 23 March 2016
Thanks Ansari for your reply.
The debonding charges paid not at the time of original acquition but at the time of bringing the asset from selling company to purchasing company on account of acquisition of a business from purchasing company and the debonding charges paid were not part of purchase consideration.
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