in IAS 16 - Property, Plant and Equipment by
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Assets need to be recognized as Assets in transits due to transfer in out variance between two branch?

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by Level 3 Member (5.7k points)
No you cannot!!!
IAS16.20c States that costs of relocating of a item of property plant and equipment or all of an entity's operations is not included in the cost of an item of property, plant & equipment.

IAS16.16a States the cost of an item of property, plant & equipment comprise any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, therefore costs incurred in transferring the asset to another branch does not form part of costs attributable to a cost of an item of property, plant & equipment because the asset was already operating in the manner intended by management before a decision is was to transfer it to another branch.

Transfer costs are pure expenses.

I hope its clear.
by
I think it has some another question. How to account for the transfer of an asset between two branches, if the asset is in transit at the year end. The answer to this question, it should be accounted in the books of the branch  as asset which is bearing the risk of transit, and disclose the status if the amount is material.

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