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Cost Subsequent to Acquisition

Cost Subsequent to Acquisition - Type cf Expenditure...

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Unformatted text preview: Type cf Expenditure Additicns lmprcrrements and replacements Rearrangement and reinstallaticn Manna] Acccunting Treatment capitalize ccst cf additlcn be asset acccunt. {a} Gaming rralue liner-m: Fiemcrre cast at and accumulated depreciaticrr an aid asset. recognizing any gain cr less. Capitalize cast at imprcrrementr'replacemem. {b} Gaming rralue unknearn: 1. it me asset's useful life is extended. debit accumulated depreciaticn fcr ccst cf imprcrremerrtr'replacement. 2. it me quantity cr strains at the asset's prcductirrity is increased, capitalise cast at imprcvementirepiacsment to asset acccunt. {a} it angina] instalaiicn cast is kncwn. acccr.rnt fcrccst cf rearrangerrnentrr reinstallaticn as a replacement {carrying 1traiue itncwn}. {bi If criginal installaticn cast is unlmewn and rearrangementr'reinstallaticn cast is material in amcmt and benefits future pericds. capitalize as an asset. {cl it criginal installaticn cast is mlmcwn and rearrangementfiehstailaticn cast is net material er future benefit is queelienable. expense the cast when incmed. {a} Drdinargrr Expense cast at repairs when incurred. {b} Meier: As apprcpriate. treat as an additicn. imprcrremem. cr replacement. ...
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