Capitalisation of flight ticket charges

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Anoop.V.P

Anoop.V.P (Querist)
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03 March 2017 An asset has been acquired from abroad without any cost and import duty.
Only flight ticket charges has been incurred ( up and down travel).
Whether it is to be capitalized as cost of asset ?

Roney

Roney (Expert)
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06 March 2017 Yes you should capitalize the flight ticket charges.
IAS 16 para 16 (b) Elements of cost - Any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
IAS 16 para 17 (c) Examples of cost - Initial delivery and handling costs;