In a Construction Industry, Bamboos which are used for climbing (reusable at different sites) and plywood be considered as Fixed Asset or Material Purchase ? Total Value of all is Rs.1100000 Kindly suggest.
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Bamboo Purchase by a Construction company : Material Purchase or Fixed Asset ?
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Quick Summary
In my opinion, bamboo should be accounted as consumables with stock because with every use the no. of bamboo and plywood will keep on getting reduced.
Not necessarily. If you want to use it as tools then obviously it's a fixed asset.
If it's 11 lakh of bamboo then your auditor will also likely ask you to capitalise it.
If those are reusable and expected useful life is more than one year then you may account it as PPE
Amortization or preliminary expenses.
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