Capitalization of fire extinguishers

Madhavan (Team Member - Audit Assurance)   (28 Points)

13 October 2011  

Hi Friends,

I have a doubt regarding Capitalization of Fire Extinguishers (Hangable & Movable)

The Unit Price of CO2 Fire Extinguisher is Rs. 8500/- which can be refilled after use. My client purchased 5 Nos. of CO2 Fire extinguisher and put 3 Nos. to use and capitalizied 3 Fire Extinguishers. 

My doubt in this case - Do they have to capitalize all the 5 Fire extinguishers that they have purchased or capitalize only Fire extinguishers which are put to use???

Please help me out with this....

 

Thanks & Regards,

Madhavan.