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Ken Garrett.
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alighere
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One of the substantive tests for self constructed assets is to ensure that the company’s system for allocating costs the asset is appropriate.
Some of these costs include raw materials, goods taken from inventory and sometimes interest costs
How do interest costs can play a part here.
Ken Garrett
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See IAS 23
Capitalisation of interest on the acquisition or construction of a non-current asset should commence when expenditures are being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress [IAS 23.17-18] Capitalisation should cease when substantially all of the activities necessary to prepare the asset for its intended use or sale are complete.
alighere
Ken GarrettViewing 2 posts - 1 through 2 (of 2 total)
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