- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
- Posts
Sir, in construction of an asset, will supervision costs be included in the value of asset?
Thanks
Unlikely – unless it was so specialist that an independent expert was needed to supervise and ensure correct installation
Here’s what IASPLUS says:
“Initial measurement
An item of property, plant and equipment should initially be recorded at cost. [IAS 16.15] Cost includes all costs necessary to bring the asset to working condition for its intended use. This would include not only its original purchase price but also costs of site preparation, delivery and handling, installation, related professional fees for architects and engineers, and the estimated cost of dismantling and removing the asset and restoring the site”
and I don’t see ‘supervision costs” in there
- The topic ‘Cost of asset’ is closed to new replies.