10-01-2006, 05:44 AM
Following is the capitalization criteria as per the IAS
1)asset has useful life of more than one year
2)It loses value through wear and tear
3)economic benefit is expected in future
Same is the criteria for CBR
There is nothing mentioned regarding amount. but materiality is one of the basic accounting concepts. So u must consider materiality while capitalizing anything...
and Depreciation
building-general->5% Factory etc->10%
furniture and plant->10
computers->30
Books etc->20
1)asset has useful life of more than one year
2)It loses value through wear and tear
3)economic benefit is expected in future
Same is the criteria for CBR
There is nothing mentioned regarding amount. but materiality is one of the basic accounting concepts. So u must consider materiality while capitalizing anything...
and Depreciation
building-general->5% Factory etc->10%
furniture and plant->10
computers->30
Books etc->20
