• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! Lectures for ACCA AAA September 2022 Exams are now available >>

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Capitalization

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Capitalization

  • This topic has 4 replies, 2 voices, and was last updated 9 months ago by P2-D2.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • August 25, 2021 at 4:03 am #632811
    victoriamapfumobn0
    • Topics: 3
    • Replies: 3
    • ☆

    Zano Ltd is a recently incorporated company, and the CEO is determined to comply with
    all regulatory requirements. The company is VAT registered and has just acquired a fiscal
    electronic machine for $ 18,000 in line with fiscalisation requirements. Determined to
    comply with the IFRS and IAS, the CEO has approached you to advise him on the correct Accounting treatment of their new fiscal machine, as he has been debating with
    the finance manager on whether to capitalize it or expense it

    August 29, 2021 at 11:15 am #633357
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6115
    • ☆☆☆☆☆

    OK, so what exactly is your question?

    Thanks

    September 3, 2021 at 3:02 am #634054
    victoriamapfumobn0
    • Topics: 3
    • Replies: 3
    • ☆

    Should the new fiscal machine be capitalised?

    September 3, 2021 at 3:04 am #634055
    victoriamapfumobn0
    • Topics: 3
    • Replies: 3
    • ☆

    Or is it an expense?

    September 5, 2021 at 12:46 pm #634435
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6115
    • ☆☆☆☆☆

    I’d have thought that it would have been capitalised as PPE as it will be used in the business for more than a year and meets the definition of an asset.

    Thanks

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)
  • ty0311 on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)
  • Manuga on ACCA AB Chapter 18 – The nature of communication – Questions
  • Manuga on MA Chapter 17 Questions Budgeting
  • Manuga on Budgeting part 4 – Cash Budgets – ACCA Management Accounting (MA)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy