fixed assets
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 May 2011
purchase of a D.G set included law charges, other miscellaneous charged paid to governement authority will this cost to be capitalised
02 May 2011
If the expenses so incurred are required to be paid for acquiring the asset, then those shall be capitalised. However, if any of the portion of the expenditure is capable of reversal or subject to credit, like Excise Duty, VAT, etc., it shall not be capitalised.
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 May 2011
these expenses are to be paid yearly like a license fees.
03 May 2011
In such case, the initial years expenses should be capitalised. From the succeeding years they should be charged to revenue.
As in the case of vehicle purchase, we capitalise the initial insurance premium and henceforth, every year the insurance premium is recognised as an expenditure and not capitalised.
As in the case of vehicle purchase, we capitalise the initial insurance premium and henceforth, every year the insurance premium is recognised as an expenditure and not capitalised.
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