in IAS 16 - Property, Plant and Equipment by
Given a property fit out, typically an amount is withhled for payment for up to a year to deal with snags that may arise. This ensures contractors fix any issues arise after the building is occupied. It will form cost of the fit out, but payment Is deferred. Should it be capitalised in fixed assets with corresponding entry in liabilities? Many thanks. K

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by Level 5 Member (11.6k points)
Yes it should be capitalized and also shown as a current liability.

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