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AS-10 : Property plant and equipment
Accountancy
Cost incurred after PPE is ready for use but is not put to use / partially put to use is not included in cost of PPE . Explain!
Answers (2)
As per my knowledge Cost incurred till the asset is ready for use can be capitalised. Cost incurred after the asset is ready for use cannot be capitalised and we even charge depreciation when the asset is ready for use and it is immaterial whether asset is put to use or not
