Capitalisation of Insurance on Purchase of New Car
This query is : Resolved
02 February 2010
hello every one,
I want to know
Whether the insurance of new purchased car will be capitalized with value of car or not.
In AS 10 on Fixed Assets i do't found any thing regarding it.
Is any guidelines available relating to it?
I want to know
Whether the insurance of new purchased car will be capitalized with value of car or not.
In AS 10 on Fixed Assets i do't found any thing regarding it.
Is any guidelines available relating to it?
02 February 2010
Yes it has to be capitalised as the car cannot be ready for use without the insurance i. e. the car cannot leave the showroom without insurance. So expenses incidental to purchase of car should be capitalised.
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