03 March 2020
Client has some AHU motors which is recently purchase 3 years back, wanted to replace the same Motors with motor consume 50% less energy. Old motor would have useful life for 10 Years.
Should this be capitalized or consider as replacement and charge to revenue?
09 March 2020
Hi, I believe it should be capitalised as the new motor is consuming 50% less energy, hence indirectly putting new motor instead of old one will provide extra future economic benefit to the company.
CAclubindia
