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How does one account for expenditure on a building design.

Is it capitalised on the cost of PPE or accounted for separately in terms of IAS 38.

asked Jun 6, 2015 in General IFRS Discussion by anonymous

1 Answer

0 votes
Usually it's part of PPE cost, because it's necessary to bring asset to current location and condition (IAS16.16b). Also cost of design does not meet criteria of identifiably (IAS38.12).  
   But if the design will be used to build many buildings (such as residential houses in the condominium), then it’s intangible asset.
answered Aug 16, 2015 by anonymous