07-18-2003, 08:24 PM
Yes Geo,
The company which is already in business, and starts new business segment, it can capitalise the profit or loss (whatever the case may be) resulting from the trial production, as far as i remember Dewan Salman Fibre Ltd. has capitalized its loss from trial prdouction in the year 1999-2000 or in 2000-2001.
I havn't seen any particular guidance for doing so in Companies Ord. or in IAS.
There are so many companies doing the same practice.
S M R
The company which is already in business, and starts new business segment, it can capitalise the profit or loss (whatever the case may be) resulting from the trial production, as far as i remember Dewan Salman Fibre Ltd. has capitalized its loss from trial prdouction in the year 1999-2000 or in 2000-2001.
I havn't seen any particular guidance for doing so in Companies Ord. or in IAS.
There are so many companies doing the same practice.
S M R
