Hello team
Where my asset is leased land that I have to reclaim from the sea. So in order of events: I am shown where my land will be reclaimed.
1. I pay costs of Project management, legal due diligence, development of Concept studies for Master Plan, professional services for Design Criteria and Baselining, modeling and environmental impact assessment, Valuation reports
2. I pay for the lease of the land
3. I incur further project management cost, legal charges for transfer, concept modeling and design costs
Do I capitalise all the above or I only capitalise the costs after point 2?
IAS 16 costs before asset acquisition
Re: IAS 16 costs before asset acquisition
I'd say that you can start capitalising eligible cost after the lease inception (which can be earlier than the first payment). See the last paragraph in https://ifrscommunity.com/knowledge-bas ... rect-costs