Trial run of already in business organization??

geo · 07-18-2003, 05:24 AM

Can the trial run loss of an organization that is already in business and starts a new unit capitalize the loss of the new units trial run...?

NoteCompany is already in business

Help with references.

smraza · 07-18-2003, 08:24 PM

Yes Geo,
The company which is already in business, and starts new business segment, it can capitalise the profit or loss (whatever the case may be) resulting from the trial production, as far as i remember Dewan Salman Fibre Ltd. has capitalized its loss from trial prdouction in the year 1999-2000 or in 2000-2001.
I havn't seen any particular guidance for doing so in Companies Ord. or in IAS.
There are so many companies doing the same practice.

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