New window blinds in a leased office
Question We took an office under the lease and we installed the new window blinds. How do we treat the expenses for the window blinds? Do we add it to the ROU asset? Or directly in profit or loss as an expense? Answer These…
Expenses for remediation of environmental damage
Question We operate a chiller plant through which we provide cooling services to our customers. However the soil around the plant is of poor quality due to a leakage of water from the plant. It caused some underground leaks. We are able to identify the…
Testing goods: inventories, expense or PPE?
Question I work with an antivirus software company in the cybersecurity industry. 95% of our sales are software but we also sell some hardware products. For the hardware products, we use some units as “proof of concept” stock; our Sales Engineers ship to our customers…
Annual license fees on software
Question We have bought SAP system for accounting from a vendor and we need to pay annual license fees to maintain this software. Kindly advise whether we can capitalise annual license fees? Answer If it is a software that is not necessary for the…
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