F-7 Financial reporting

@sheikhmuhammadfarhanali said:
Dear sir,
Please guide me why we capitalized dismantle cost in tangible non current asset,if we did this and add with cost then why we charge cost as per interest rate every year and also charge to finance cost?

Hi,

We have an obligation to dismantle the equipment and so therefore recongise the liability, plus it is directly attributable to being able to use the asset so is capitalised and depreciated as part of PPE.

Thanks