Accounting treatment

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 July 2013 Dear All

If a person enters a contract with another to use its facility for a specific period. Also spends a substantial amount on piping, flooring, painting, etc to make the facility usable. What will be the accounting treatment for the same.

Thanks in advance

04 July 2013 In case you are using those space more than one accounting year, you can capitalise the expenses and depreciate based on useful year, if short period the expenses off

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Querist : Anonymous

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04 July 2013 Thank u very much Mr. Ramesh. Bit can u support your view with any provision our case law

05 July 2013 YOu may refer to Accounting Standard 19 on lease.


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