Capitalisation of assets

This query is : Resolved

DHIREN (Querist)
Follow

08 May 2015 Sir I want to know that if we purchase Windows 8 to upgrade older version than it should be capitalise...???? Or it will be revenue expenditure as it is replacement of item.??? plz clarify me on this.

Kaushik Joshi

Kaushik Joshi (Expert)
Follow

08 May 2015 In order to categorize an item as a revenue or capital expenditure, you need to consider following points:
1. Whether the expenditure adds value to existing structure.
2. Whether benefits derived from the said expenditure are accrued over a long period of time.
3. or Whether it just gives benefits for the short term.

If points 1 & 2 are applicable, capitalise. Else treat it as revenue expenditure.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Hanuma Yanduri

Jai Solanki

George Innocent

Ravikumar

sandhya.v

Subscribe Now

Capitalisation of assets

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

CA Final

GST CONSULTANCY

Manager- Finance and Compliance

Senior Executive