IndigoLearn

AS7

Can the costs incurred to secure a contract be treated as contract costs?


lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

17-Jul-20 16:53

13

Answers (5)

Yes, only if they can be separately identified and measured reliably and it is probable that the contract will be obtained.


ruchi lahoti

ruchi lahoti

Moderator

18-Jul-20 11:35

Yes, only if they can be separately identified and measured reliably and it is probable that the contract will be obtained.


ruchi lahoti

ruchi lahoti

Moderator

18-Jul-20 11:35

Even though contract is obtained how can we make liable the contrctree for the costs incurred by us to secure a contract?


lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

18-Jul-20 11:59

What are the costs that can be incurred to secure a contract?


lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

18-Jul-20 12:00

Even though contract is obtained how can we make liable the contrctree for the costs incurred by us to secure a contract?


lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

18-Jul-20 11:59

Contractor incurs costs to secure a contract and by including such cost which can be called pre-constructin cost have to be capitalised. The contract does not have to be identified before the capitalization decision is made; it is only necessary that there be an expectation of the recovery of the costs. Once the contract has been accepted, the pre-contract costs become contract costs incurred to date.


ruchi lahoti

ruchi lahoti

Moderator

18-Jul-20 12:34

What are the costs that can be incurred to secure a contract?


lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

18-Jul-20 12:00

cost incurred in securing a contract is basically incurring cost to get a contract. It could be for getting documents or any bonds etc


ruchi lahoti

ruchi lahoti

Moderator

18-Jul-20 12:40