Accounting standard on insurance premium paid
JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)
19 November 2013JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)
19 November 2013
CA Kedar Sakhardande
(Proprietor)
(942 Points)
Replied 19 November 2013
If the condition is such that you can not operate the machine (accounting terminology: PUT TO USE) without taking the insurance cover , then the insurance premium has to be capitalidsed otherwise it will be deferred revenue expenditure to be allocated over the period.
regards