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In capitalizing property, plant and equipment, how we treat a dismantling costs at discounted rate of 10%
in IAS 16 - Property, Plant and Equipment by

1 Answer

+1 vote

All costs incurred up to the excavation (Digging the whole) for the new building such like the Purchase price – cost of razing old building - legal fees – draining of swaps – Site development and other costs LESS; proceeds from the sale of existing building, standing timber, etc shall be considered as part from the cost of land

now in case a borrowing was in the middle, please refer to borrowing cost IAS 21

Hope the answer was clear

by Level 2 Member (4k points)