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Wat do we do to employee costs in refinement of products?
Do we capitalize or expense it?If they improve the earning capacity of a tangible non-current asset, then capitalise.
But your question is too vague – I could well give a different answer if the question had been more specific.
And I don’t understand your expression “refinement of products”
but the qs is also too vague in the bpp book so in the exam in such a situation van i explain that if it enhances the capability then capitalize otherwise expense out?
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