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Dear sir
If at initial test process if an asset produce product and sold that product is that to be deducted from the cost of the asset or to be treated as income?And if an asset needs repair cost that could make it sold it that to be capitalized ?
Please answer this?Thank u
Why have you written “Please answer this?”
Are there any, ANY, questions on this forum that I haven’t answered – and almost all of them within 24 hours
Are there any at all?
Now, to get to your post …
I’m sorry to say that I don’t understand the first part of your post … What do you mean “at initial test”
What’s the situation that you have in your mind about “if an asset produce product”?
Is this referring to the development costs of a new product and, possibly, a prototype is produced. The company feels that they no longer need that prototype so they sell it? If that’s the situation to which you refer (and that’s a bid IF) I cannot believe that the accounting treatment could be at all relevant ie it can’t be of any consequence if it were to be deducted from the cost of the developed asset or if it were treated as revenue
Personally I would probably err on the side of writing it as revenue
Wher a repair is needed to bring an asset to a saleable condition, it would be written off as an expense … probably
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