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What is the correct treatment of transportation expenses and interest expense in the following case through the mentioned options according to IAS ?

A company imported two machines to be installed in its new factory by bank loan:

1) Both expenses should be capitalized by adding them to the original cost.

 2) Both expenses must be charged to the income statement.

 3) Interest may be capitalized while transport expenses should be considered as expenses in the statement of income.

 4) Transport expenses must be capitalized by adding them to the cost of the asset and interest can not be capitalized in light of these circums

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Question ajoutée par Moataz Elsabawy , مدير مالى , مجموعه شركات الانصار
Date de publication: 2017/04/26
Weaam Hasan
par Weaam Hasan , Trainee Accountant

1) Both expenses should be capitalized by adding them to the original cost.

 

Apoorv Pariwala
par Apoorv Pariwala , Assistant Manager-Finance & Accounts , Walled City Hotels Pvt. Ltd.

Transport expenses must be capitalized by adding them to the cost of the asset and interest can not be capitalized in light of these circums

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