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Cost not included in carrying value of PPE

Financial Reporting

If insurance cost is incurred before a PPE is ready to use, should it be capitalised? As it is not related to bringing the machinery to its present location and condition as intended by management Video Details Ind AS - CA Final Ind AS 16 Property, Plant and Equipment 6. Initial Measurement - Part 3


Kavin Cj

Kavin Cj

CA Final

0

18-Mar-24 19:29

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Answers (1)

Best Answer

Generally Insurance cost is not included. Insurance has a validity of 1 or 2 years and is expensed over that period.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

19-Mar-24 07:51

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