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Treatment for reinstatement costs

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Posted On 28 August 2013 at 12:03 Report Abuse

Hi.. I have a query regarding reinstatement cost in an operating lease.

There is a lessee who is vacating a property A and moving to property B. There will be some costs involved to bring Property A to its original state. (eg.cubicles constructed, general wear and tear of assets etc..). What should be the treatment for such cost, assuming that this was not capitalised at the initial stage? Pls quote relavent Standards also. Thanks.

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