A company was ordered a machine with some specifications to foreign supplier. An employee goes to the place of supplier for trial of the machine ordered. The query is that the travelling expenses related to above visit either capitalized or transferred to P&l A/c.
Please give a referrence of Accounting Standard also, if possible.
Simple..Travelling Expenses incurred for trial of asset purchased should be capitalized..
Thanks khusal for reply...
but machine is not purchased till date.. then the expenses will be capitalized under CWIP ??
N N V Satish & Co.,
Hyderabad
CA Inter
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M N Rao & Associates LLP
Vijayawada
CA Inter
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