Accounting for fixed asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 Sea Ports provide service of harbouring of ships and facilitate loading and unloading of cargo.In order to help smooth movement of ships Radar based navigational assitance is deployed by the port which is known as Vessel taffic management system(VTMS).Now there is port P1 which shares common waterway with port P2,which is situated in few miles before P1. Now P2 purchases and deployes a VTMS and 50% of the cost is shared by P1. The VTMS is within the premises of P2 and operated by it but benifited by both P1 & P2. Should P1 capitalise 50% of the cost in it's books?