02-10-2010, 05:56 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by noor4794</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />As per IAS-16 your treatment is right. The cost of registration of vehicles is material in many cases. Beside it the capitalization of registration is as per GAAP.
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You are right that its material in many cases and capitalization is as per GAAP... but whatif COMPANY has a general practice of not capitalizing registration charges...
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Dear, Standards overrule company's policy, if there is a contradiction in between company's policy and standards then obviously company's policy should suitably be amended to make it in line with the applicable standard.
Registration fees should be capitalized forth with the Vehicle.
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />As per IAS-16 your treatment is right. The cost of registration of vehicles is material in many cases. Beside it the capitalization of registration is as per GAAP.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
You are right that its material in many cases and capitalization is as per GAAP... but whatif COMPANY has a general practice of not capitalizing registration charges...
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear, Standards overrule company's policy, if there is a contradiction in between company's policy and standards then obviously company's policy should suitably be amended to make it in line with the applicable standard.
Registration fees should be capitalized forth with the Vehicle.
