We are in the process of capitalising one equipment. Can we capitalise the employee traning cost for that equipment as per Ind AS 16 ?
1 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(6939 Points)
Replied 28 January 2025
Capitalization Criteria To capitalize employee training costs, you must ensure that they are:
1. *Directly attributable* to bringing the asset to its working condition.
1. Training on the operation and maintenance of the equipment.
2. Costs incurred to familiarize employees with the new equipment.
1. A clear link between the training costs and the specific equipment.
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