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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
OK, so what exactly is your question?
Should the new fiscal machine be capitalised?
Or is it an expense?
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.