1- does product testing expense is capital expenditure or revenue?
2- expense related to event of launch of new products is revenue or capital expenditure?
Most of the cases, both considered as revenue expenditures.
3 Replies
CA Ashish Joshi
(CA)
(265 Points)
Replied 09 June 2023
If product is new by range of products then testing exp can be considered Revenue & if the product is totally new by nature/origin then the expense can be capitalized.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 10 June 2023
AS 26 or Indas doesn't mention anything about new range or new origin. Can you help me with the standard Paras please.
I just know research and development phases
Recent Topics
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
Related Threads
CAclubindia
