Capitalisation
This query is : Resolved
Shankar T S
(Querist)
13 November 2013
Dear Sir,
We may incur some significant expenses on account of new factory opening in the form of inauguration function involving event management company expenses, exp on food and refreshments for visitors etc...may also include travel. Can we capitalise this along with the building cost. Is this to be treated separately and expensed or we can increase the building cost with this and claim depreciation
Thanks for your help
We may incur some significant expenses on account of new factory opening in the form of inauguration function involving event management company expenses, exp on food and refreshments for visitors etc...may also include travel. Can we capitalise this along with the building cost. Is this to be treated separately and expensed or we can increase the building cost with this and claim depreciation
Thanks for your help
Nikhil Kaushik
(Expert)
14 November 2013
i dont think such expense are eligible for capitalization as they dont yield enduring benefits to the company. should be expensed out.
Shankar T S
(Querist)
14 November 2013
Dear Nikhil, Thank you very much for the clarification. Regards Shankar
Nikhil Kaushik
(Expert)
14 November 2013
You are welcome shankar
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