- This topic has 2 replies, 3 voices, and was last updated 7 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
Hello, If the question states that the project incurs a loss should the cost incurred whether development or as an asset cost should be capitalised or not? How to treat the cost when the project incurs a loss?
If the project is loss making, costs are always expensed and not capitalised. If a company is locked into a contract which is expected to be loss making, then a liability for onerous contract must be set up on the balance sheet.
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.