Urgent help

Originally posted by : Robin
	Whether road tax and insurance payment to be capitalised or expensed when vehicle is newly acquired by the company ?

Both should be capitalized

Hi Robin

All expenses incurred on asset still the time  the asset is ready for use , need to be captialized. but note that all refundable taxes that is which we can claim from the government need to be included in the recognization.

In the given case, both the expenses need to be captialized ,

Best Regards

Nirmala

Yes. It has to be capitalised.