01-27-2010, 02:18 PM
I think your auditors are on right side. Capitalization policy of your company defeat the requirements of IAS-16 because items of PPE mentioned by you are used in more than one accounting period and carry material value in the balance sheet. As per industry practice in Pakistan, almost all the companies are capitalizing these items.
Please follow the link it is relevant to your problem.
http//www.accountancy.com.pk/forum/topic.asp?TOPIC_ID=5388
Regards,
*
Please follow the link it is relevant to your problem.
http//www.accountancy.com.pk/forum/topic.asp?TOPIC_ID=5388
Regards,
*
