Tangible Non-Current Assets (IAS 16 (:warning:Why is the standard…
Tangible Non-Current Assets
:warning:Why is the standard Required?
NON CURRENT TANGIBLE
the assets to the position that It can be used for the
Non-Current Asset Dr.
Directly Attributable COSTS
:check:Site Preparation and installation Cost
:pencil2:Legal Registration and Architect's Design Fees
DURING CONSTRUCTION ONLY
Transportation and Handling Cost
:no_entry: wastage and errors are not recognised as cost
Tests For Capitalization
:no_entry: repair and maintenance is not capitalized
:check:Increase in asset's useful life
:check:Major overhaul that restores its
previous life and the consumption
of previous economic benefits
:warning: where a component is treated separately,
when such item is replaced or restored
:Warning: for such costs no provision is made as there is no present obligation as there is not guarantee that the business will continue to use the asset , ie it may sell the asset as well.
:check:Improved Quality of Output