Asset capitalisation
This query is : Resolved
06 January 2021
following expenses are incurred before commercial production
1) Technical consulting & training for machine
2) Pre-Operative salary
3) Legal fees
4) Training
5) Trial Run
6) Consumable & Material CWIP for trial run
All above is showing under capital work in progress
Tell Us what is treatment of above for capitaliation after commercial production start
and if amortise then in how may years along with entry
please guide
following expenses are incurred before commercial production
1) Technical consulting & training for machine
2) Pre-Operative salary
3) Legal fees
4) Training
5) Trial Run
6) Consumable & Material CWIP for trial run
All above is showing under capital work in progress
Tell Us what is treatment of above for capitaliation after commercial production start
and if amortise then in how may years along with entry
please guide
CA R SEETHARAMAN
(Expert)
06 January 2021
Capitalise all the expenses as cost of the machinery and depreciate over its useful life.
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