Nandan Sarma (Article Assistant) (325 Points)
02 October 2011
does the travelling expenditure incurred by managment for purchase of Fixed Assets should be Capitalised as per AS-10,
Rahul Suneja
(CA-Final, CS-Exec)
(215 Points)
Replied 02 October 2011
yes as per AS10 all expenditure icurred for bringing the goods to the premises is capitalised i.e added to the cost of asset
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 02 October 2011
YES IT IS TO BE CAPATILISED..........
ALL EXPENDITURE INCUEERD UP TO THE READY OF USED OF ASSETS IS TO BE CAPATILISED...
IT IS A CAPITAL EXPENDITURE...............
Bhaskar Unnikrishnan CPA CMA
(Accounts / Administration)
(414 Points)
Replied 03 October 2011
Agree with above mates... :)
Rakesh
(Executive- Commercial & CMA final student)
(179 Points)
Replied 03 October 2011
Yes v can capatalise it...However it should be substential amount otherwise no use of capitalising it.
Pooja
(Final CA)
(502 Points)
Replied 03 October 2011
yes, travelling expense will be included in the cost of asset since it is incurred to bring the asset at its present usable state..
CA RITIKA CHHABRA
(ca)
(205 Points)
Replied 03 October 2011
yes it should be capitalised. all expenditure till bringing the capital asset to premises should be capitalised as per AS-10
CA Sachin Rastogi
(Audit/IFRS Manager)
(338 Points)
Replied 03 October 2011
Yes, the travelling expenses for bringing the asset to its present location and condition for the intended use of the management needs to be capitalised to the asset cost.
Pawan Kumar
(audit manager)
(118 Points)
Replied 03 October 2011
hey
can anyone tell me what is the treatment of under construction assets or depreciation can be claimed on such assets or not.
praveen
(Chartered Accountant)
(6971 Points)
Replied 03 October 2011
All expenditures incurred for the purpose of bringing the fixed asset to the present location and condition has to be capitalised. hence it is advisable to capitalise such travelling expenses .
shakuntala chhangani
(FCA Course co-ordinator WIRC coaching centre)
(2525 Points)
Replied 30 October 2011
Hi pawan, Dep is charged after the asset is ready for commercial use. It can not be charged on underconstruction assets.
CA Shakuntala Chhangani
CA Sachin Rastogi
(Audit/IFRS Manager)
(338 Points)
Replied 30 October 2011
Depreciation is charged only on the assets which are ready for use. In your case asset under construction cannot be depreciated however, they can be impaired if there are indicators of impairment. Thanks
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