We made repairing work at office ceiling due to Water leakage & Costing is around 10 Lacs. Approx. 6 Lacs for labouring & 4 Lacs for material use for repairing Both supplier is separate.
Now Question is that this would be Expense out or Capitalized in books ? Please explain.
15 May 2023
As I confirmed that this will be last up to 4 to 5 years or may be some unexpected years. So in this case should we capitalized or Expense out ?
16 May 2023
According to the information given, it appears that the office ceiling repair work was more of a maintenance or restoration investment than a structural upgrade or improvement. In this situation, it is likely that the charge will be recorded as a revenue expense and expensed on the income statement.
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