Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Should Specialised training cost be captalised?
- This topic has 1 reply, 2 voices, and was last updated 3 years ago by mrjonbain.
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- September 27, 2021 at 10:53 am #636583
In the answer to BPP practice book, page 23 question 62 states that specialized training cost must be expensed because the employee does not represent a resource controlled by the company.
However, from website : accountingguide.com states that we can capitalize the training cost if we can justify that it is the necessary cost need to bring assets to working condition.
In that case, how should we determine whether specialized training should be capitalised or not?
September 27, 2021 at 11:50 am #636589In almost all cases I believe the BPP would be the correct approach. In exam terms, I think the question would have to make it extremely clear that the training costs were directly attributable to getting asset into use and paid simply to put asset into use in order to capitalise. Even in the case I have outlined I have personally never heard of this circumstance and would like someone to confirm whether this is possible. Hope this helps.
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