Sufyan ukaye (Student) (60 Points)
02 April 2012Hello all,
In View of the AS 10 related to the Fixed Assets, will the Expenses incurred on Site Visit, Preparation of Layout, interior Concepts and Designing, Preparing Designs, etc.( in Realtion to Fixed Assets ) be considered as Fixed Assets ? Please Clarify your Stand.
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 02 April 2012
As per AS-10 accounting for Fixed Assets, all the expenses incurred in bringing the asset to its present condition are to be capitalized.
Hence the site visit without which the asset would not have come into existence, preparation of layout whihc is required for preparing the asset, preparation of designs are related to bringing the fixed asset to its working condition.
So all the costs stated are to be capitalised.
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