accounting of electrification expenses in leased factory
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 January 2011
Electrification expenses are incurred by an undertaking in its leased factory which is to commence operations in 2 months.Can this expense be written off over a period of 3 years as the factory will be shifted to own premises in 3 years?
17 January 2011
If you cant take the items with you (you will have to leave it when you get out, then yes, it will have to be depreciated over 3 years.
This is assuming that the benefit from this expenses will be received over the next 3 years and accordingly qualfies to be capitalised.
This is assuming that the benefit from this expenses will be received over the next 3 years and accordingly qualfies to be capitalised.
05 June 2011
First 3 year you can write off, but after buying the factory you need separate FA valuation report by a valuer
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