Treatment of artificial grass
This query is : Resolved
03 August 2013
Dear Sir,
Whether Artificial Grass should be treated as Fixed assets or Expenditure ?
If it is to be treated as assets under what head artificial grass will fall i.e. Plant & Machinery.
Regards
Anjana Sehgal
Whether Artificial Grass should be treated as Fixed assets or Expenditure ?
If it is to be treated as assets under what head artificial grass will fall i.e. Plant & Machinery.
Regards
Anjana Sehgal
03 August 2013
it is an expenditure as it does not fall within the definition of Fixed asset as it is not producing any revenue to the entity.
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16 December 2025
Property, plant and equipment are tangible items that:
(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
(b) are expected to be used during more than a period of twelve months.
An enterprise may decide to expense an item which could otherwise have been included as property, plant and equipment, because the amount of the expenditure is not material.
The revenue producing capability is not the sole factor of recognizing a fixed asset.
(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
(b) are expected to be used during more than a period of twelve months.
An enterprise may decide to expense an item which could otherwise have been included as property, plant and equipment, because the amount of the expenditure is not material.
The revenue producing capability is not the sole factor of recognizing a fixed asset.
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