Fixed Asset

Guidance Note on Accounting for Depreciation in Companies inter alia lays -

Depreciation on low value items

26. Prior to the enforcement of the Companies (Amendment) Act, 1988, many companies used to follow the practice of writing off low value items in the year of acquisition, since such a write off was permitted under the Income-tax Act. The limit for such a write off was Rs. 5,000/-. Schedule XIV is, however, silent on this aspect.

The Committee is of the view that the concept of materiality should be kept in mind while deciding the amounts to be written off in this regard.

For instance, in small companies, the total write off on this basis may be a substantial figure, it may not, therefore, be proper to charge 100% depreciation on low value items. However, in large companies, where the value of assets is very high, it may be proper to charge 100% depreciation on low value items keeping in view the concept of materiality.

The Committee recommends that the accounting policy followed by the company in this regard should be disclosed appropriately in the accounts.

Hope this resolves your query with utmost clarity.

Per AS 10 - subsequent expenditures related to an item of fixed asset should
be added to its book value only if they increase the future benefits from
the existing asset beyond its previously assessed standard of
performance.

Accordingly, in case 15 Lacs increases the future benefits from the fire alarm beyond its previously assessed standard of performance 15 Lacs  should be capitalised

In case it does not, 15 Lacs should be charged to the Profit & Loss Account.

It totally depends on the policies of diff diff organizations.