Replacement of Existing Motor during the Useful Life
This query is : Resolved
03 March 2020
Client has some AHU motors which is recently purchase 3 years back, wanted to replace the same Motors with motor consume 50% less energy.
Old motor would have useful life for 10 Years.
Should this be capitalized or consider as replacement and charge to revenue?
Old motor would have useful life for 10 Years.
Should this be capitalized or consider as replacement and charge to revenue?
04 March 2020
Hi.. Please help if anybody can add comments
09 March 2020
Hi, I believe it should be capitalised as the new motor is consuming 50% less energy, hence indirectly putting new motor instead of old one will provide extra future economic benefit to the company.
Regards
CA Kamal Kant
Regards
CA Kamal Kant
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