Mahesha E9 (12 Points)
11 June 2018
robinghosh
(accountant)
(180 Points)
Replied 11 June 2018
Santosh Pandey
(26 Points)
Replied 12 June 2018
Any expenses to be treated as capital expenditure basically these conditions should be satisfied:
1.Such expenses substantially increases the useful life of Asset
2.Such expenses is likely to expand the entity's ability to generate the future economic benefits.
If above conditions are satisfied,then such expenses should be capitalized.
If expenses incurred for merely maintaining the assets ,then it should be recognised as Revenue expenditure..
I think it would be helpful for you. Thank you!!!
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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