I would like to know whether an asset with the individual value of less than Rs 5000/- but collectively of a higher value when seen on a year base be capitalised or can be writen off as revenue expenditure.
for Eg if the company purchase a camera and it has a policy of not capitalising an asset whoes individual value is less then Rs 5000/-.
but the company purchases 7 camera in a year colletively of Rs 21000/- ie Rs 3000/- each.
can it write it off as a revenue expenditure as according to its policy or it much book it as fixed asset ignoring its policy of capitalisation.
09 September 2010
for Eg if the company purchase a camera and it has a policy of not capitalising an asset whoes individual value is less then Rs. 5000/-.
I think you have by mistake put "not" in above sentence.
In this case the cameras can be written off @ 100% depreciation rate, but it will be treated as asset & will be part of the gross block.
CAclubindia
