Sreejesh V K (ICMA Final Student) (147 Points)
14 January 2016Quick question that's in dispute: Cost of spare parts used for smooth productivity of a machinery is capitalizable? It will come under Consumables & Equipments or under Plant & Machinery?
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 14 January 2016
If it increses the capacity or productivity of the machinery, you can capitalise the same
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 14 January 2016
If it increses the capacity or productivity of the machinery, you can capitalise the same
chandra sekar
(Manager-Accounts)
(387 Points)
Replied 14 January 2016
any spares being purchased for wear and tear of machineries, has to be booked as revenue expenditure. The capitalisation part ends for any machinery, till it starts production, say , 90 days from the date of installation.
ranjan meher
(odisha)
(29 Points)
Replied 14 January 2016
Rohit Johri
(Team Lead)
(24 Points)
Replied 16 January 2016
CAclubindia
