Recognisation of expense

Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. Capital Expenditure may include the following:

• Purchase costs (less any discount received)
• Delivery costs
• Legal charges
• Installation costs
• Up gradation costs
• Replacement costs

in my opinion above treatment is right.

if comapnay treat it as maintenance expense....is it voilation of accounting standanrd?

ofcourse, they can not charge the same through P&L as a whole.

cool...thnx dear,,,,and plz tell me that a company install the water filter for availability of good drinking water for employee with a water cooler is it treated as asset or revenue expenses??

It should be capitalized.(F.Assets)

vry fine dear...thnx a lot....