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preoperative expenses for equipment clasification on financial statements
in IAS 16 - Property, Plant and Equipment by
Please specify the question clearly.

1 Answer

0 votes
IAS 38 explicitly prohibits the capitalization of preoperative expense as part of the asset. Therefore, any preoperative expenses should be charged to the profit and loss account in the period in which they are incurred.
by Level 3 Member (7.2k points)