Treatment of expenses

Hi,

I have a doubt regarding the accounting treatment of ATM Machine, bought by our bank for which final bill from the IT consultants are not yet received, but the machine is in order now

i just want to clarify can we capitalise the expenses incurred, without the final invoice from the consultant being received, we have the agreement copy with the consultant which shows the final payable amount due to them, but invoice not yet received

Can anyone guide me on this treatment

Thanks

Javed Nehal Syed

 

Replies (1)
right now you can treat all the expenses under capital-work- in progress. when ever final invoice received from the it consultant, then you can transfer to fixed asset

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