03-01-2010, 11:22 PM
IAS-16 para 16(b)
"Any Cost Directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the management"
As Registration of vehicle is necessary by law for using the vehicle. therefore, with out registration vehicle is not in the condition to be used.
that's why it should be capitalized.
"Any Cost Directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the management"
As Registration of vehicle is necessary by law for using the vehicle. therefore, with out registration vehicle is not in the condition to be used.
that's why it should be capitalized.