Office renovation exps


This query is : Resolved 

Quick Summary
When renovating a leased office space for a 5-year term, businesses often question whether these costs should be capitalised as an asset or treated as an immediate expense. The general accounting practice is to amortise these renovation expenses over the remaining lease period, effectively spreading the cost across the benefit received.

(Querist)
10 July 2023 Hello All,

Renovation of office taken on lease for 5 years, should it be capitalized or shown as expense.


10 July 2023 Amortize the expense for the period of five years.

Smrity (Querist)
20 July 2023 Thank your sir for the reply

20 July 2023 You are welcome.


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