Ind As 16 Property plant and equipment

These are subsequent expenses which fall under PPE and if they are bringing future economic benefits, they are capitalised.

Hi Mr Ashish sry I did not read the IndAS 16 as I was in a hurry previously. I have two revelations today

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management. Therefore, costs incurred in using or redeploying an item are not included in the carrying amount of that item.

the above things means, all directly attributable costs are included into the PPE and stopped once Asset construction is completed (can’t add any subsequent costs to capitalise)

then later on you wanted to increase road widtth to have easy access to vehicles- this standard

Recognition- Stripping activity asset

Measurement- Initially at cost model and subsequently at cost or revaluation. Similar to PPE cost less accumulated amortisation less impairment

Presentation- Asset side, a separate asset and cannot be included into the cost of carrying amount of PPE.