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Capitalize or charge out

 
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Capitalize or charge out
kamranACA
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#2
10-30-2007, 07:53 PM
Dear,

I at the outset say that this cost cannot either be capitalized or deferred.

For capitalization, an item should meet the criteria given by IAS 16, which in my view such prototypes dont meet.

There is no concept of deferral of any cost even for un-listed or private companies, as the fifth schedule has been revised recently.

However, for capitalization, some basis could be made provided that the prototype is considered to be bringing some economic benefits flowing towards your organization. Strictly as per my view, prototypes dont have such accompanying benefits. Still, this has to be seen in specific circumstances.

But there is no concept of deferral.


Regards,


Kamran.
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Messages In This Thread
Capitalize or charge out - by Ahmadraza - 10-30-2007, 07:17 PM
[No subject] - by kamranACA - 10-30-2007, 07:53 PM
[No subject] - by Schuaeb - 10-30-2007, 11:36 PM
[No subject] - by kamranACA - 10-31-2007, 04:15 PM
[No subject] - by noman - 11-01-2007, 07:31 AM
[No subject] - by Ahmadraza - 11-01-2007, 06:41 PM
[No subject] - by Schuaeb - 11-01-2007, 11:54 PM
[No subject] - by Schuaeb - 11-02-2007, 12:31 AM
[No subject] - by kamranACA - 11-04-2007, 02:55 AM
[No subject] - by Ahmadraza - 11-05-2007, 03:01 AM
[No subject] - by Schuaeb - 11-05-2007, 08:17 PM
[No subject] - by kamranACA - 11-05-2007, 11:43 PM
[No subject] - by Schuaeb - 11-06-2007, 11:01 PM
[No subject] - by kamranACA - 11-07-2007, 01:31 PM
[No subject] - by Schuaeb - 11-07-2007, 10:07 PM
[No subject] - by kamranACA - 11-08-2007, 03:51 PM
[No subject] - by Schuaeb - 11-14-2007, 09:45 PM
[No subject] - by kamranACA - 11-14-2007, 10:01 PM
[No subject] - by Schuaeb - 11-18-2007, 12:34 AM

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