Chartered accountant - Plintron
186 Points
Posted on 14 December 2020
First time Insurance - In case of First time Insurance (Insurance expense incurred at the time of purchase of Asset), then the same can capitalised i.e. it can be added to Fixed asset cost.
Subsequent Insurance renewals - However, in case of renewal Insurance (i,e paid on yearly basis), then it can charged as expenses in Profit & Loss account