Do you classify wages of staff working in a project under construction as CAPEX?

Question

I am working in a a company that is constructing an electricity power station. How do I treat the oped expenses and at stage do I capitalize them?

Answer 1

Yes you can capitalize wages of staff in the construction of an asset. Refer IAS 16.17 (a) "

costs of employee benefits (as defined in IAS 19 Employee Benefits) arising directly from the construction or acquisition of the item of property, plant and equipment can be included as directly attributable costs.