As 10
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 November 2011
Dear Sir,
We have electrical masts and lamp as in our asset register. Now we have planned for conversion of lamps from exisitng SV lamp to Greenline LED lights which rendering not only the extended running life of the lamps and also the cost benefit.
could you please suggest , whether we can capitalized the smae expense or it should be revenue with an example?
sanjeev bagchi
9926907455
We have electrical masts and lamp as in our asset register. Now we have planned for conversion of lamps from exisitng SV lamp to Greenline LED lights which rendering not only the extended running life of the lamps and also the cost benefit.
could you please suggest , whether we can capitalized the smae expense or it should be revenue with an example?
sanjeev bagchi
9926907455
16 November 2011
Para 12.1 of AS 10 provides that, "Only expenditure that increases the future benefits from the
existing asset beyond its previously assessed standard of performance is
included in the gross book value".
Since in your case, the conversion of lamps will extend the running life of the asset, the expenditure should be capitalised.
existing asset beyond its previously assessed standard of performance is
included in the gross book value".
Since in your case, the conversion of lamps will extend the running life of the asset, the expenditure should be capitalised.
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