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Is it possible to book fitout proforma invoice as Fixed Assets for


When building a shop, I receive pro-forma invoice from the contractors for advance payment. I pay the supplier based on the pro-forma invoice.

Should I use the pro-forma invoice to capitalize it as a Fixed Assets as per IFRS? Or is a final invoice required?

asked Jul 21, 2014 in IAS 16 - Property, Plant and Equipment by anonymous

1 Answer

0 votes
You can recognize the fixed assets based on the payment on the per-forma invoice. In fact it should be accounted for as capital WIP.
answered Jul 24, 2014 by anonymous
IFRS can not answer the questions like supporting documents for capitalization. One has to the consider the transfer of Risk and test of economic benefits. For all practical reasons, it is advisable to capitalise on the basis of Tax Invoice.


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