20 October 2012
A Company owns a Building. a Space in the said building is remain closed for 21 years.No renovation is being made as the company is into Liquidation, after 21 years company wins the case of liquidation and gets the title of Building. Company decides to Make the vacant Space available fro its office. for making the Space workable a massive renovation or repair takes place costing Rs. 4 crores, including installation of Air Conditioners, Furniture & Fixtures Etc.
A part of expense mentioned above is spent on renovation of Floor, walls, Painting Whitewash, Tiles Fixing, Lighting etc.
My QUESTION is Whether the Expense Incurred Apart from the AC & Furniture should be Transferred to Profit & Loss Account based on the Text of AS-10 Issued by ICAI. The said Expenditure is just a repair of Office Space which can also be termed as Improvement.
CAclubindia
