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Forensic Accounting

preoperative expenses for equipment clasification on financial statements


preoperative expenses for equipment clasification on financial statements

asked May 23, 2016 in IAS 16 - Property, Plant and Equipment by anonymous
Please specify the question clearly.

1 Answer

0 votes
IAS 38 explicitly prohibits the capitalization of preoperative expense as part of the asset. Therefore, any preoperative expenses should be charged to the profit and loss account in the period in which they are incurred.
answered Dec 12, 2016 by Mian Musawar Level 3 Member (7,160 points)



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