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You can capitalize expenses relating to commisioning etc before the machice is put to use. Therfore value will be purchase price + exp.
After commisioning still you can capitalize exp if that exp improves the life of the asset.
Machine purchase price + commissionning consultancy only.
Not training, because we may have to pay again to train new hired people at any time , when we don't have the previously trained ones available , who can show them how to use it.
Purchase price and commissioning cost can be capitalised but training cost can be expenses directly
machine value+any other expenses related to that machine
An item of property, plant and equipment should initially be recorded at cost. [IAS16.15] Cost includes all costs necessary to bring the asset to working condition for its intended use. This would include not only its original purchase price but also costs of site preparation, delivery and handling, installation, related professional fees for architects and engineers, and the estimated cost of dismantling and removing the asset and restoring the site
Training cost can't be added to the machine as the training cost is related to HR.
It can be classified as training and development cost under HR cost centre.
The machine can be recorded at its original price plus and transportation charges to get it to the place where it is intended for use, the installation cost and alll the cost necessary to make it ready for its first use.
I totally agree withe the ansewer given by Abdul Fazmeer Zain. IAS16 will apply to this.
the face value or in another words the book value..
The more accurate for new FA (machine) is book value, and commissioning consultancy and training can be booked as expense which will reduce your machine value and monthly depreciation or gross / net profit margin will also reduce on monthly basis as once incurred expense.
