Fixed assets capitalisation

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Ankit Agarwal (Querist)
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17 April 2018 Hello Sir,
Some Equipments Purchased for GYM of Amount Rs.5016/- so is it mandatory to capitalize it or it can be booked as Expense ?

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Aditya V

Aditya V (Expert)
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17 April 2018 Without any reference to the amount, if the recognition criteria of Ind as 16 or As 10 revised, is satisfied then you need to capitalize. Otherwise charge it to P & L.
Ind as 16 says
The cost of an item of PPE shall be recognize as an asset if, and only if: It is probable that future economic benefit associated with the items will flow the entity; and The cost of the item can be measured reliably.
If both the condition above are satisfied, then capitalize.

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