08 January 2024
Sir, we purchase an e pass token ( usb token for DSC- computer acc.) recently, for Rs. 500/- . Given the fact that benefit derived from the item would be more than 12 months, i am wondering whether i should capitalise the item. Note the actual DSC ( the item that is downloaded in the usb token- shown differently in invoice) has one year validity and hence will be shown as expense
14 January 2024
Businesses should adopt a capitalization policy establishing a INR amount threshold. Fixed assets that cost less than the threshold amount should be expensed.
CAclubindia
