Under IFRS, the costs of relocating property, plant, and equipment can be capitalized as assets and depreciated over the period of expected benefit. True False
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Cost of capitalization:
When an asset is constructed or bought, there are two costs that would form part of capitalization - initial costs and subsequent costs. The costs incurred must bring in some economic benefit to the entity. It could be increase in the life of the asset of enhancing the performance.
Capitalization costs increase the cost of the asset.
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