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Calitalization of construction cost on rented assets

Others 566 views 1 replies
While auditing accounts of a company i came across the following situation: A office space was taken on a rent of 6 years. This office was not fully constructed and thus subsequent to the acquisition of such space, costs were incurred on furnishing,electrical works,painting etc. My question is whether these costs are to be expensed or are to be capitalized? Expenditure incurred is around 30 lakhs while monthly rent is about 1.5 lakhs
Replies (1)
Can be capitalised However the Capital expenditure can be apportioned over the period of Lease.


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