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Do we capitalize the Items Acquired for Safety or Environmental Reasons as per IAS16?

Although these items generally do not have a direct impact on increasing the future economic benefits of any existing piece of PP&E.

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Question ajoutée par Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate
Date de publication: 2014/05/12
Sajjad Ali
par Sajjad Ali , Manager Accounts , Jubilee General Insurance Co Ltd (Formerly New Jubilee Insurance Co Ltd)

Cheques deposited into the bank but not yet collected Cheques issued but not yet presented for payment Bank charges Amount collected by bank on standing instructions of the concern. Amount paid by the bank on standing instructions of the concern. Interest debited by the bank Interest credited by the bank Direct payment by customers into the bank account Dishonour of cheques Clerical errors

Rashad Moursi
par Rashad Moursi , Finance Director & Business Development, International Business Transformer Owners Repr. - Hotels , Investment and financial

Yes we shoud Caopitalized, Such items PP&E qualify for recognition as assets because they enable an entity to derive future economic benefits from related assets in excess of what could be derived had those items not been acquired. For example, a chemical manufacturer may install new chemical handling processes to comply with environmental requirements for the production and storage of dangerous chemicals; related plant enhancements are recognized as an asset because without them the entity is unable to manufacture and sell chemicals. However, the resulting carrying amount of such an asset and related assets is reviewed for impairment in accordance.

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