CAPITALISATION OF FIRST INSURANCE ON TRAILOR PURCHASE

Yes, first insurance paid for assets shall be capitalised.

 As per AS  10  the cost of an itemof fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any directly
attributable cost of bringing the asset to itsworking condition for its intended
use; any trade discounts and rebates are deducted in arriving at the purchase
price.

Here key word is cost incurred the asset to itsworking condition for its intended use.

Dear Mr. Niraj,

I agreed with the opinion of Mr. Manoj.

In my opinion too, the first insurance charges as well as the Road Tax paid for purchasing new trailor vehicle shall be capitalized.

Regards

i am also agree with Manoj and Ratti.