Can we capitalize the rent on the new building???

Navneet (Asst. Finance Controller (Alshaya India))   (42 Points)

12 August 2015  

Dear All,

 

Our Company has rented a new building adjacent to our existing premises. We are currently paying rent of 5500 each month and totalling to 66,000 a year. My query in this regard is that as per the IFRS can we in anyway capitalize the rent we pay for the new building even if the annuexure building works are not yet completed.??? Upon enquiry with some they have stated that we cannot capitalize the rent and the same has to be expensed as per IFRS. 

Kind opinions from our experts are invited.