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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › initial cost of fixed asset
Dear sir
what i want to ask is after buying a fixed asset while testing a (at installation process)if a product is produced and sold is it going to be treated as P&L income or treated as a deduction from initial cost of the asset?
Well, I believe that I answered that having guessed that that was your question
However … think about the practicalities of the hypothetical scenario that you’ve envisaged. Any organisation that is trying to develop a new product is highly unlikely to want to sell those prototypes that they produce during the development stage
OK?