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- This topic has 5 replies, 3 voices, and was last updated 7 years ago by MikeLittle.
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- March 31, 2016 at 10:59 pm #308769
Hi Mike.Why is that the cost of training the existing work force is not capitalised,because i think it will increase the useful life of the assets.Practise question F7
April 1, 2016 at 6:00 am #308774Hi, thanks for this. An asset, according to the definition in The Framework, is:
“an asset: a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity”
Are you in employment? I’ll assume that the answer is “Yes”
Are you controlled by your employer?
Is your employer able to instruct you to do ANYTHING and you WILL do it?
Are you able to leave your job and go find work somewhere else?
Now I’ll ask again, are you under the control of your employer?
And now look again at the definition of “an asset”
OK?
April 1, 2016 at 8:35 am #308783ohhh yess Mike.Thanks.I get it.Its coming back.Thanks.
April 1, 2016 at 11:41 am #308792You’re welcome
October 1, 2017 at 6:47 pm #409153wonderful explanation mike….no body can do this……….. thank you so much….
October 1, 2017 at 8:55 pm #409164You’re welcome!
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