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Capitalization of Removal Expenses

AS 10 clearly states that only expenses incurred till that date of commencement of usage of the asset are to be capitalised. However, in this case, an expense of future removal has been capitalized (May 2020- RTP). Can you please explain why and the logic?

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Suraj Narayanan

Suraj Narayanan

CA Final

7K+

20-Nov-20 23:05

29

Answers (1)

Decommissioning costs are also capitalised.


Suraj Lakhotia

Suraj Lakhotia

Admin

21-Nov-20 08:17

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