capitalisation of assets

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GAURANG KACHHIA (Querist)
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18 May 2011 hello,

i want to know about the capitalisation of plant and machinery.

my query is that there are various palnt and machinery purchased and end of the F.Y. the company could able to start only few palnt and mahchinery.
and there is capital expenditure on pipe line for the whole plant and machinery.

so my question is that whether capital expenditure on pipe line should be treated as separte asset or whether it can be transfered to various plant and machinery?

Pankaj

Pankaj (Expert)
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18 May 2011 It use of pipeline is independent of any particular machine, it is a separate asset.

If not, it should be capitalised alongwith the machine alongwith which it can be used.

Refer AS -10 also.