Capitalize or Expense out?

[bilalfca]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by basit_namdar</i>
<br />For example if the laptop is capitalized at 50000 and we add another 20000 for LCD than the total will be 70000 for that laptop. but the cost of laptop in market is 50000 which includes LCD.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

salam 2 all.
well i think that we will have to make an adjustment
(i suppose that the Co. recognized the laptop as an asset which will obviously bring capital inflows to the entity) in the laptop account...

like the entry for loss will be

loss from .............. 20000 Dr.
laptop 20000 Cr.

loss will be included in PLS A/C and laptop cost will be reduced by the amount of loss

then we will incorporate the price of new LCD in the A/c of laptop (which will bring the price of laptop to the FMV) and will depr. that according to IAS-16!

well this is my understanding...

love to discuss this further...

and DARD, u plz discuss this topic with us. very educational for us.

Regards.