AS-10 Cost of Fixed Assets
This query is : Resolved
06 September 2008
I heard that, till the asset is put to commercial use all the cost (including interest cost on borrowed fund) has to be capitalized and included in cost of asset
If its true..Will the Trial Run expense be included in cost of machinery.
Or will trial run expense be treated as revenue expenditure-ordinary but exceptional and debited to P&L a/c
*** Trial Expense includes direct material, direct labour, direct overheads etc***
If its true..Will the Trial Run expense be included in cost of machinery.
Or will trial run expense be treated as revenue expenditure-ordinary but exceptional and debited to P&L a/c
*** Trial Expense includes direct material, direct labour, direct overheads etc***
CMA Jitendra Singh
(Expert)
06 September 2008
If trial run expenses are huge & considerable than better capitalize or else charge to P& L
CA MOHIT VAATS
(Expert)
07 September 2008
Yes, That will include in the cost of machinery... As per AS 10
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