Expenditure Nature

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This discussion addresses whether the cost of materials like MS iron and angle used to construct a roof for material storage on a production floor should be capitalised. The consensus is that such expenditure should be capitalised as it enhances property value and provides benefits exceeding 12 months. Guidance is sought on the appropriate account name for this capitalised cost.

Rupesh Gupta

Rupesh Gupta (Querist)
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16 September 2023 Dear sir,

Plase advice me whether cost of ms iron,ms angle etc for making roof for material storing in the production floor should be capitalised or not.If yes please suggest correct account name for it

Gokul Sharma

Gokul Sharma (Expert)
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16 September 2023 value of material...???????????????

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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21 January 2024 In this case, there would be a definite increase in the value of the property and benefits will drive for more than 12 months so as per me it should be capitalised

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