Capitalization of building premises

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Hassan Mohammed Basim (Querist)
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13 December 2019 A firm is undertaken on its own building premises, some interior designing repairs have taken. should the value of premises include cost of interior designing or that should be debited to p&l a/c as current year expense. and how to calculate the current value for the premises.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 December 2019 Add such cost to the value of the premises.

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Hassan Mohammed Basim

Hassan Mohammed Basim (Querist)
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16 December 2019 Sir the firm is partnership firm, it is carried down on one floor of the building which is owned by one of the partner,how to determine the value of the premises(only that floor)

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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22 May 2020 If the cost of interior designing repairs is nominal amount it can be debited to PL and if the same work increases the value and life of the asset it can be capitalized. The cost of such repairs for part can be ascertained with the help of contractors authorised to perform such work.

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