Maintenance period cost

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2013 After completion of a Project, there will be a post project maintenance period. Say for Example 1 year free maintenance. During this Period the Company spends some money for Materials, Labour and Other Maintenance Exp. My question is, are these expenses belongs to the project or General Repairs and Maintenance Exp.? If it is a Project Expenses where and how to account it? Could anyone give me a detailed explanation?

CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)
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08 January 2013 post project completion expenses capitalization depends on terms & conditions of project auqisition...
if these are substantial in amount then should be capitalized.....

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2013 Thank you Mr. Lokesh,

If you could explain me the answer in detail i will be happy.

Also please explain me how to treat a prior period project cost for Ex. drawing, quoting exp.... and related labour cost of the Designing Engineer and Quantity Surveyor.

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