Capital expenditure
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 August 2012
Whether upgradation of Operating System to the latest version is Capital Expenditure & added to the existing value of Fixed Assets?
Further whether purchase of RAM for existing computers is Capital Expenditure?
Pl advice.
Further whether purchase of RAM for existing computers is Capital Expenditure?
Pl advice.
04 August 2012
As per Para 8 of AS 10, any expenditure which increase the performance of assets should be capitalized.
If upgradation of operating system increase performance & if it estimated to be used for more than a year then it can be capitalized.
However if the upgradation of operating system is routine for every year, then it should be treated as expenses.
Addition of RAM to be capitalized & depraciation to be calcualted based on no of useful life the system not RAM.
If upgradation of operating system increase performance & if it estimated to be used for more than a year then it can be capitalized.
However if the upgradation of operating system is routine for every year, then it should be treated as expenses.
Addition of RAM to be capitalized & depraciation to be calcualted based on no of useful life the system not RAM.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST rate and HSN code for sale of racing horses
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
