03-17-2009, 10:11 PM
Thanks for the response. Many companies take benefit of flexibility provodied by IAS-16, which relates capitalization of costs criteria with commissioning of plant to a condition intended by the management. I guess, primarily auditors are responsible to substantiate and verfiy such instances because they have ready access to the relevant records.
Regulators, may not always be in a position to take action unless auditors make some observations in their report.
Cement Companies capitalize huge costs of trial run losses, in some cases upto 20% of the invoice price of the pant and machinery being commissioned.
Regulators, may not always be in a position to take action unless auditors make some observations in their report.
Cement Companies capitalize huge costs of trial run losses, in some cases upto 20% of the invoice price of the pant and machinery being commissioned.
