Repairs and maintenance

AS 464 views 1 replies

A major Reparis expenses done for a motor vehicals after accident but we dont recived any insurance claim could i cpaitalized those expenses as per AS-10. Total Repair charges is almost 25% of the cost of vehicals. Pls suggest.............

 

Replies (1)

If it increases the life of asset from its originally assessed life then it should be capitalised,however repairs after an accident does not fit in this criteria. Hence the repair expenditure should be written off from revenue.


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