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IAS -16 depth..

If a manager is asked to buy a specific asset with in certain prize limit and will be given a sum of10$ for his success, and given a reward each time when he/she win a bid, will that cost be included in asset cost at recognization.??

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Question added by Irfan Hashim , ACCOUNTANT , CHOICE MODERN LIFESTYLE
Date Posted: 2014/07/09
Syed Muhammad Zeeshan Alam
by Syed Muhammad Zeeshan Alam , Assistant Manager Pricing Analysis , Ufone 4G

Since the reward is something to motivate the manager, i dont think this will be capitalized. As it cannot become the part of the cost "necessary" to bring the asset to working condition.

Stephen Mitango
by Stephen Mitango , Management Accountant based in Kampala Uganda , Uganda Telecom Limited

Ok since the payment is related to the CAPEX

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