Regarding treatment of expansion expenditure

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This discussion addresses the accounting treatment for expenses incurred during a hospital's expansion into a multi-speciality facility. Specifically, it clarifies that building construction costs should be capitalised under the 'Building account'. However, medical equipment expenses require a separate accounting treatment and cannot be included in the building account. The query also touches upon transferring a previous year's advance income tax balance to a capital account.

Hemant Dosi

Hemant Dosi (Querist)
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11 March 2024 We are running a hospital of eye now we are going to expansion our hospital into multispeciality pls tell me as we are doing expenses regarding construction of building and other medical equipments all expenses should be under building a/c capitalised or we have to do other process lets me inform