Capitalization of computer

llllVICTORllll (Internal Auditor) (511 Points)

06 August 2012  

Hi

My question for today is

 

Our Company has purchased items such as Hard disk, motherboard, RAM, SMPS, processor and cabinet.. now it is obvious that a CPU is being assembled in house.

 

So, here CPU has no utility of its own, its utility comes when a monitor, keyboard, mouse etc are attached to it

 

So my question, should these purchase of items said above be capitalised(or written off as Repairs and maint.)?? if yes, why? and at what value?