Asset or expense

When purchasing pallets for a cold store costing over 5 lakh, consider their accounting treatment. If the pallets are expected to last more than a year, they should generally be capitalised as an asset, likely under plant and machinery, and depreciated over their useful life. If their lifespan is shorter, they may be expensed. The cost can be added to the carrying amount of existing Property, Plant, and Equipment (PPE) with appropriate disclosure.