Capitalisation issue

This query is : Resolved

Dhavnish (Querist)
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27 June 2012 Could any one please guide me in the following matter:

A company has moved into a new office. The new office has a big terrace garden. Can the exepnses of buying flowers, flowerpots and related nursery articles be capitalised as fixed assets? the amt. of expenses incurred is above Rs. 200000

Sanjay Chauhan (IFRS)

Sanjay Chauhan (IFRS) (Expert)
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28 June 2012 The expenditure seems to be revenue in nature.

It will be recurring during the period with no long term benefit.

It does not satisfy any difinition under AS 10 for capitalisation and hence would be part of office maintenance cost.

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Dhavnish

Dhavnish (Querist)
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28 June 2012 Thank you very much, Sanjay Sir.

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