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lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

17-Jul-20 16:53

13

AS7

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

Answers (5)

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.

lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

18-Jul-20 11:59

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.

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 12:00

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

ruchi lahoti

ruchi lahoti

Moderator

18-Jul-20 12:34

lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

18-Jul-20 11:59


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

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 12:40

lakshmi kollipara

lakshmi kollipara

CA Inter

1K+

18-Jul-20 12:00


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

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