SUMANTA BERA (ACCOUNTS MANAGER) (25 Points)
08 July 2011Is there any compulsion on Capitalisation of Repairs to any Fixed Assets (Land , Buildings etc.) ?
Can I charge the whole expenditure of such repair to the P&L A/c ? Any prohibition pertaining to the same under the Cos Act or The I.T Act ?
Plz inform.
Regards,
Sumanta
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 08 July 2011
there is no compulsion to capitalize the repair . you can charge it to pand l ac. but it should strictly related to repair according to accounting std.
rtectify me if i am wrong
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 08 July 2011
| Originally posted by : Aditya(future ca) | ||
 |
there is no compulsion to capitalize the repair . you can charge it to pand l ac. but it should strictly related to repair according to accounting std. rtectify me if i am wrong |
 |
SUMANTA BERA
(ACCOUNTS MANAGER)
(25 Points)
Replied 09 July 2011
Plz let me know which Accounting Standard (AS ?) deals with the treatment for repairs.
rachit jain
(chartered accountant )
(635 Points)
Replied 09 July 2011
AS 10 talks about accounting for fixed asset which also talks about treatment of repair and other exp on fixed assets
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 10 July 2011
According to me there is no compulsion on capitalisation of Repairs. However if the repairs is susbtantial nature whish is increasing the useful life of assets / increasing the productivity then such repair should be capitalised.
Resham
(Carpe Diem !!!)
(6535 Points)
Replied 10 July 2011
Repairs are to be debited to P & L a/C...
unless it increses the productivity of the FA or leads to increse in the life of FA...
In the latter case.... Capitalise it...by adding it in the amount of FA...
CAclubindia
