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Capital expenditure

This query is : Resolved 

25 February 2014 Their is existing steam pipeline forming the integral part of turbine and boilers.
Now it is needed to be replace with new and redesigned pipelines that reduces the stopage of boilers and turbines by reducing the steam leakage.

wheather this is capital exp.

25 February 2014 Depends on the nature of the business and value of the pipe

25 February 2014 Existing pipeline is capitalised with boilers and turbines not capitalised seperately in books.
New pipelines replacing cost is generally huge.


25 February 2014 if the amount is material then it would be treated as capital expenditure

25 February 2014 but as per AS 10 amount of exp is immaterial



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