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Hi Mike.Why is that the cost of training the existing work force is not capitalised,because i think it will increase the useful life of the assets.Practise question F7
Hi, thanks for this. An asset, according to the definition in The Framework, is:
“an asset: a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity”
Are you in employment? I’ll assume that the answer is “Yes”
Are you controlled by your employer?
Is your employer able to instruct you to do ANYTHING and you WILL do it?
Are you able to leave your job and go find work somewhere else?
Now I’ll ask again, are you under the control of your employer?
And now look again at the definition of “an asset”
OK?
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