Accounting treatment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2013 Dear All

If a person enters a contract with another to use its facility for a specific period. Also spends a substantial amount on piping, flooring, painting, etc to make the facility usable. What will be the accounting treatment for the same.

Thanks in advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 July 2013 In case you are using those space more than one accounting year, you can capitalise the expenses and depreciate based on useful year, if short period the expenses off

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2013 Thank u very much Mr. Ramesh. Bit can u support your view with any provision our case law

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