Privacy: Your email address will only be used for sending these notifications. Thanks. It is charged to Profit & Loss Account. As these charges are something which relate to inefficiency of an organization rather to a handling charges which is described AS-10. A demurrage can also be used when talking about currency trading and the cost of owning and storing the currency.

Generally these charges are common in container transport / freight and it is advisable to associate such expenses with the respective operation. Email me at this address if my answer is selected or commented on: Email me if my answer is selected or commented on, negative international critique with respect to IAS2, positive and negative critique with respect to the standard of ias 2. Post by Hesham255 » Wed Dec 18, 2019 10:09 am Hello, I understand that demurrage charges accounting related to inventory shouldn't be capitalized but must be considered as expenses in P&L. You can do this instead of adding them to the capital cost of your building. Restructuring charge September 20, 2018 A restructuring charge is a large one-time write-off taken by a business in contemplation of a reorganization. Email me at this address if a comment is added after mine: Email me if a comment is added after mine. As per my view it should not be capitalised but I want to know a reference Para no of AS/ AS Interpretation, any guidance note or any other statutory requirement. On the other hand if such expenses were incurred in carrying out some administrative transport then it should not be included in the cost of sales; for instance you might have used a prime mover with a container in shifting your office to some other place. Please login to post replies Generally these charges are common in container transport / freight and it is advisable to associate such expenses with the respective operation.   26 April 2011. You can deduct expenses you incur for eligible disability-related modifications made to a building in the year you paid them. Sharpe also turns a profit since he is no longer paying fees for a depreciating commodity. I want know whether Demurrage charges incurred should be capitalised to the asset cost or it should be write off to the P/L Account.

satish kumar Professional Course, India's largest network for finance professionals, As per my view it should not be capitalised but I want to know a reference. Your are not logged in . Negative interest rates occur when borrowers are credited interest, rather than paying interest to lenders.

The charge is taken in advance in order to take a one-time "hit" for the full amount of all expected reorganization costs, after which there should be no additional charges.

Booking an impairment charge for employee and other demo cars. Demurrage is a term that refers to payments made to the owner of a chartered ship by the charterer when there is a delay in the loading or unloading of goods, or any other form of break from the original charter contract. He keeps these bars stored with a third-party company, Home Securities, LLC.