alleryInauguration cost of a new facility is:
ACapitalised in PPE cost
BAdded to inventory cost
CCharged off as expense
DAdded to goodwill account
Answer & Solution
Correct answer: C. Charged off as expense
1. AS 10 excludes inauguration costs from the cost of PPE.
2. They do not bring the asset to its location/condition.
3. They are expensed in the period incurred.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §2 list of exclusions_
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