02-28-2008, 06:12 PM
Dear Astute,
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Astute Accountant</i>
<br />And the depreciation charge is added to the carring amount of other assets when permitted. (But I'm not sure, in which cases it is permitted ( So....can't explain. )
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Depreciation charge can be capitalized in the cost of some qualifying asset. The example could be given of the electrification of colonies and villages/cities by KESC and WAPDA. In such electricfication heavy machinery and equipment is used by these entities. Further, some specific offices are allocated which do not do anything else except for such capital works. The depreciation of such heavy machinery. equipment and offices (including its fixture and other assets) could be capitalized (on some prorate basis) as part of Electrical Assets capitalized as a result of such electrifiation.
There could be so many other examples like plaza building, excavation of wells, initial mining and construction process etc, in the cost of which the depreciation of those assets which were used in the building process, can be capitalized.
Regards,
KAMRAN.
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Astute Accountant</i>
<br />And the depreciation charge is added to the carring amount of other assets when permitted. (But I'm not sure, in which cases it is permitted ( So....can't explain. )
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Depreciation charge can be capitalized in the cost of some qualifying asset. The example could be given of the electrification of colonies and villages/cities by KESC and WAPDA. In such electricfication heavy machinery and equipment is used by these entities. Further, some specific offices are allocated which do not do anything else except for such capital works. The depreciation of such heavy machinery. equipment and offices (including its fixture and other assets) could be capitalized (on some prorate basis) as part of Electrical Assets capitalized as a result of such electrifiation.
There could be so many other examples like plaza building, excavation of wells, initial mining and construction process etc, in the cost of which the depreciation of those assets which were used in the building process, can be capitalized.
Regards,
KAMRAN.
