On which cost we have to record the asset

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1359 Points Posted on 30 November 2021
on which cost we have to record the asset at its purchase cost or purchase cost including installation ?
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On 30 November 2021 at 15:03 Report
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This discussion clarifies the cost basis for recording assets. Assets should be recorded at their purchase cost, including any necessary installation expenses. While installation charges might seem like an expense, they are capitalised as part of the asset's cost. This allows these costs to be recovered over time through depreciation or amortisation.

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SEO Sai Gr. Hosp.
212453 Points Posted on 30 November 2021

INCLUDING INSTALLATION.

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On 30 November 2021 at 15:07
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1359 Points Posted on 30 November 2021
But installation charges is expense why it is not recorded in p&l a/c ???
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On 30 November 2021 at 15:08
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My grammar is 💯 good I
7306 Points Posted on 30 November 2021

WHEN YOU CAPITALISE COSTS THEY ARE RECOVERED EITHER THROUGH DEPRECIATION OR AMORTISATION

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On 30 November 2021 at 18:26

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