Cost of Fixed Assets

All the expenses incurred to bring the capital asset into use should be capitalised. So hotel bills paid for technicians will be capitalised.

Bank charges paid are for using the services of the bank, so it can be claimed as revenue expense.

hotel Bills of techinical staff involved in the installation of the machinery will be added in the cost of the machinery

Bank charges will be charged as revenue expeses, but after the IFRS implementation it will be added in the cost of the machinery till the machinery become put to use. 

I agree with the above posts.

As Hotel expenditure would not have been incurred but for installation which is necessary for bringing the

capital asset into use.

Hotel charges , travel charges and refreshment charges of those foreign people should be capitalised to the cost of machinery 

all the expenses you have given in question will be capitalised except bank charges

All the expenses you have mentioned in your question must be capitalised.

The hotel bills of the technical engineers called for installation and testing of the Machinery is the expenses of the capital nature that's why after taking reference of AS-10 and AS-16THE ABOVE TREATMENT IS TOTALLY CORRECT

Hi all....

Can u tell me why we can't capitalise bank charges incurred in connection with P&M??